Search This Blog

Wednesday, April 17, 2013

S. 269SS not applies to cash loan taken by Partner from firm

Print Friendly and PDFPrintPrint Friendly and PDFPDF
HIGH COURT OF MADRAS
Commissioner of Income-tax
v.
V. Sivakumar
Tax Case (Appeal) No. 279 of 2010
Date of Pronouncement – 11.02.2013
 
Issue - The assessee had taken the amounts from four firms which were found to be in cash and the Assessing Officer has considered these payments were in violation of Section 269SS of the Act. Stand of assessee is that the amounts were taken in his capacity as partner and it cannot be taken as an independent transaction and there is no violation of Section 269SS of the Act.
Held - Referring to R.M. Chidambaram Pillai (supra); Kum. A.B. Shanti (supra); Lokhpat Film Exchange (Cinema) (supra), Tribunal held that there is no separate identity for the partnership firm and that the partner is entitled to use the funds of the firm and that the assessee acted bonafide and that there was a reasonable cause within the meaning of Section 273B of the Act. We do not find any error or legal infirmity in the order of the Tribunal warranting interference. The substantial question of law raised in this appeal is answered in favour of the assessee and the Tax Case (Appeal) stands dismissed. No costs.

No comments:

Post a Comment