Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 1055 - AT - Income TaxPenalty u/s 271D - payment made by sister concern on behalf of the assessee - HELD THAT:- Since the assessee is a small trader and not maintaining journal, he has entered the transaction in cash book. The entry is in both side of cash book which means assessee has not received cash. Household expenses incurred and paid from firm have been debited to assessee's a/c and accordingly journal entry has been passed in cash book crediting the A/c of firm M/s Rambilas Shiv Kumar (Sister concern) and debiting the capital a/c of Subash Chand Nyati in which narration is given as "credited to M/s Rambilas Shivkumar and debited to household expenses as such no 'money' passed from firm to the assessee. ITAT Ahemdabad in the case of ACTT vs Gujarat Ambuja Proteins Ltd. [2003 (10) TMI 248 - ITAT AHMEDABAD-B] has held that where account of sister concern was credited by the assessee by journal entries on account of payment made by sister concern on behalf of the assessee, there was no no violation of the provisions of Section 269SS. The transaction between the assessee and sister concern M/s Ram Bilas Shiv Kumar was current account in nature and was not a loan or deposit and hence there is no violation of section 269SS as in the case of CIT vs ldhayam Publication Ltd. [2006 (1) TMI 97 - MADRAS HIGH COURT] . Copy of account of the assessee in the books of sister concern M/s Rambilas Shivkumar clear indicate that it is a current account and as such provisions of Section 269SS/ 271D are not applicable. - Decided in favour of assessee
|