Section 269ss taking and repaying loans fom partners u]

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hemanshu (Querist)
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12 February 2013 there are cash loan transactions between partners and firm and shown as loans from partner on the liability side , the jcit has issued a notice u/s 271D and 271E as to why penalty would not be imposed on such transactions during the Asst year 2009 10

Anand

Anand (Expert)
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13 February 2013 You have not mentioned your query.
In my view penalty is imposable for contravention of the provisions of Section 269SS. If loan is repaid also in cash then penalty is imposable u.s. 271E.
My professional colleagues may opine on whether my view is correct or if there is a way out.

V K Bajaj

V K Bajaj (Expert)
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13 February 2013 Mr Anand you are correct.

However, if the assessee can prove strongly and perfectly that transaction by cash was unavoidable and payment by cheque/bank was not possible then may get some relief.

But the chances are less.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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14 February 2013 Omec Engineers Vs. CIT (2007) 294 ITR 599

CIT Vs. Balaji Traders (2008) 303 ITR 312 (Mad)

CIT Vs. Sunil Kumar Goel, (2009) 315 ITR 163 (P&H)

CIT V. Idhayam Publications Ltd., (2006) 285 ITR 221 (Mad)

Commissioner Of Income-Tax vs Noida Toll Bridge Co. Ltd. (2003) 184 CTR Del 266.

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