SEC 269SS

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2011 Sir

A cashier has to pay to vendor of co. Rs.125000/ towards canteen bill for the month.As per the agreement with co , vendor has to deposit Rs.25000/ towards deposit. Till date he has not deposited any money of the agreed deposit. While making the payment cashier deduct Rs.25000/ for deposits & pay bal Rs.100000/ by a/c payee cheque.

Whether provisions of Sec 269SS attracts as company takes the deposit " otherwise than by way of cross cheque / bank draft.".

Is there any circular / clarification / case law for this.

Thanks
Vdd2.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 June 2011 This is purely a journal entry. In this case no transaction of money has been done and the deduction has not been challenged by the the canteen operator. For case law refer:

ITAT , Pune Bench in Sunflower Builders Pvt. Limited. vs Deputy Commissioner Of Income-Tax. 61 ITD 227

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