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2009 (7) TMI 116 - HC - Income TaxAdvance – amount received otherwise than by way of account payee cheque or bank draft – held that - assessing authority had added Rs. 1,00,000 which is the same amount as unexplained cash credit under section 68 of the Act and the Commissioner of Income-tax (Appeals), vide order dated December 1, 1993, had held that the aforesaid amount had been taken as advance from M/s. Babu Ram Ganga Ram against subsequent purchase of pulses made from the assessee respondent. From the order of the Tribunal, we find that against advance of Rs. 1 lakh, pulses worth Rs. 1,02,957 have been supplied to M/s. Babu Ram Ganga Ram, Suriyawan, Varanasi, on various dates which also substantiates that the amounts in question were advanced towards future supply of goods. The provision under section 269SS of the Act is applicable only in case of loan or deposit and does not cover cash advance for purpose of goods in future – provisions of section 269S not applicable – penalty not to be imposed.
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