TaxTMI 
TaxTMI 
Applicability of provisions of Section 269SS and 269T on receipts and repayments of deposits between Firm and Partners
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....pplicability of provisions of Section 269SS and 269T on receipts and repayments of deposits between Firm and Partners <br>News and Press Release<br>Dated:- 31-8-2008<br><BR>The assesseee, being the pa....
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....rtnership firm, had claimed that "in view of the fact that partners and firm are not independent of each other and the firm is not juristic person, these transactions cannot be considered as intra p....
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....erson but were only for the purpose of carrying on partner's own business." But the AO did not accept this explanation and rejected the plea of the assessee. The Assessing Officer considering it to ....
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....be intra party transactions of deposit otherwise then by way of cheque or bank draft inviting the provisions of Section 266SS and 267T and considering these payments and repayments were in violation o....
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....f Sections 269SS and 269T imposed penalty under Sections 271D and 271E respectively for receiving the deposit in cash and payment in cash. Assessee has challenged the action of the AO. ITAT held that....
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.... the provisions of Section 269SS and 269T are applicable to the transactions between firm and partners but waived the penalty on the ground of bonafide belief. Honorable, high Court of Rajasthan conf....
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....irmed the order of ITAT. For full text of judgment - visit 2008 -TMI - 30505 - RAJASTHAN HIGH COURT<BR> News - Press release - PIB....