Sec. 269 SS , Income Tax

[sathyanarayanan kasinathan]

Whether payments by Husband to contractors doing carpentry and other work in house built by wife attracts   Section 269SS These are repaid by waife after a year.

Both husband and wife are assessees.

Sathya

Posts / Replies

[GOPALJI AGRAWAL]

The transaction would of course fall within the provisions of section 269SS unless accounted for as drawings.

[sathyanarayanan kasinathan]

Yes it is accounted for as drawings in husbands books.

[MOHAN S]

The reply depends on how the transaction is accounted by the wife in her books. If the wife decide  treats this as a "Loan from her husnand" then the posiibility of the Assessing Oficer invoking  Section 269 SS of I.T Act is there. However, if the payments are made by the husband directly to the contractor then one can certainly argue that there is no acceptance of  "deposit" or "loan" by the assessee in cash (which is the primary criterian for invoking Sec269SS).