Section 269 ss & t
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 June 2013
Dear Sir,
One of our client is partnership firm. Out of all partner 3 partner have retired from firm from 1st of april 2012. There is capital treated as loan.
Now we have made payment during the year.
Weather we have to take same under loan schedule for audit report u/s 269 SS or 269 T ?
Thanking you in advance.
One of our client is partnership firm. Out of all partner 3 partner have retired from firm from 1st of april 2012. There is capital treated as loan.
Now we have made payment during the year.
Weather we have to take same under loan schedule for audit report u/s 269 SS or 269 T ?
Thanking you in advance.
19 June 2013
Yes, you have to consider the transactions as loan transactions. Further, in reference to such accounts you may write a note below the annexures in your Audit Report.
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20 June 2013
Balance in capital account is transferred to loan account by way of a journal
entry. Acceptance through Journal entry do not attract section 269SS.
Citation:- CIT v. Noida Toll Bridge Co. Ltd. 262 ITR 260 (Del.)
Amount paid by firm to partners or vice versa is payment to self and does not partake the character of loan or deposit. Provisions of section 269SS are not applicable to such facts.
Citation:- CIT v. Lokhpat Film Exchange (Cinema) [2008] 304 ITR 172 (Raj).
Balance in capital account is transferred to loan account by way of a journal
entry. Acceptance through Journal entry do not attract section 269SS.
Citation:- CIT v. Noida Toll Bridge Co. Ltd. 262 ITR 260 (Del.)
Amount paid by firm to partners or vice versa is payment to self and does not partake the character of loan or deposit. Provisions of section 269SS are not applicable to such facts.
Citation:- CIT v. Lokhpat Film Exchange (Cinema) [2008] 304 ITR 172 (Raj).
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