Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
The ITAT held that where a partnership firm repays loans to its partners by journal entries/book entries, such transactions are not covered u/ss 269SS/269T of the Act, as a partnership firm is not distinct from its partners under general laws. The repayment by journal entry falls outside the ambit of section 269T, and such transactions are entitled to immunity u/s 273B, which stipulates that penalty u/s 271E is not imposable if there was reasonable cause for failure to accept/repay loans/deposits in prescribed modes. The journal entries were made in bona fide belief based on judicial precedents, without any finding of tax evasion intent. Consequently, the assessee's appeal was allowed.
The ITAT held that where a partnership firm repays loans to its partners by journal entries/book entries, such transactions are not covered u/ss 269SS/269T of the Act, as a partnership firm is not distinct from its partners under general laws. The repayment by journal entry falls outside the ambit of section 269T, and such transactions are entitled to immunity u/s 273B, which stipulates that penalty u/s 271E is not imposable if there was reasonable cause for failure to accept/repay loans/deposits in prescribed modes. The journal entries were made in bona fide belief based on judicial precedents, without any finding of tax evasion intent. Consequently, the assessee's appeal was allowed.
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TaxTMI 
TaxTMI 
of 4918 
