269 SS & T

696 views

Save Share

Ashish Modi

CA FINAL STUDENT

60 Points Posted on 14 March 2011

Dear Sir,

Mr A and Mr B are partners in a firm.. Mr A is short of Rs . 3,00,000 cash in his individual account. And Mr.B is surplus of cash. If Mr.A takes cash directly from Mr. B of Rs.3,00,000, it will attract sec 269ss & t.

Now, If Mr.B gives cash to partnership firm, it is out of scope of sec 269 ss & t. If the same cash is taken by Mr. A from partnership firm to meet his shortfall, is it allowed?

I mean, will it attract sec 269 ss & t, because it is an indirect way of routing cash through Partnership Firm..

Replies (3)

U S Sharma

glidor@gmail.com

21670 Points Posted on 14 March 2011

Originally posted by : Ashish Modi
	Dear Sir, Mr A and Mr B are partners in a firm.. Mr A is short of. 3,00,000 cash in his individual account. And Mr.B is surplus of cash. If Mr.A takes cash directly from Mr. B of 3,00,000, it will attract sec 269ss & t. Now, If Mr.B gives cash to partnership firm, it is out of scope of sec 269 ss & t. If the same cash is taken by Mr. A from partnership firm to meet his shortfall, is it allowed? I mean, will it attract sec 269 ss & t, because it is an indirect way of routing cash through Partnership Firm..