TaxTMI 
TaxTMI 
2011 (9) TMI 794
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....peal is by the Revenue challenging the order passed by the Tribunal which held that the amount received by the assessee by way of cash in excess of Rs. 20,000/- is neither a loan nor deposit and therefore section 269SS is not attracted. 2. The assessee is doing job work from M/s. Namasthe Exports Ltd. In fact it is a sister concern. The entire goods manufactured by the assessee is sold to M/s. Na....
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....ition of loan or deposit as stipulated in section 269SS of the Act, it was an amount paid in advance for the job work done to facilitate the assessee to survive in the business and therefore the Tribunal held that the said amount did not represent the loan or deposit and section 269SS is not attracted and therefore the penalty imposed was set aside. Aggrieved by the said order, the Revenue is in a....
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....naccounted cash found in the course of searches carried out by the Income-tax Department is often explained by tax payers as representing loans taken from or deposits made by various persons. Unaccounted income, is also brought into the books of account in the form of such loans and deposits, and tax payers are also able to get confirmatory letters from such persons in support of their explanation....
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.... said amount paid is a loan. No inference of loan can be drawn from such excess payment of the loans paid by M/s. Namasthe Exports Ltd. which is reflected in their accounts and correspondingly it is entered in the accounts maintained by the assessee. In fact, the purpose for which the said amount was received is also clear from the material on record and therefore there is nothing to indicate that....