• It cannot apply at purchases between a common association as well as people because try decided when you look at the Muslim Metropolitan Co-medical Borrowing from the bank Community Ltd. v. JCIT [(2005) 278 ITR (AT) 246 (Pune)].
• It actually was kept inapplicable so you can a deal between a company and you will its people given that was canvassed, however it try found to be needed seriously to choose the trouble as the need was even or even acceptable inside CIT v. Lokhpat Film Change (Cinema) [(2008) 304 ITR 172 (Raj.)].
• Around can not be one or two legitimately various other parties while the between a company and you may couples since the try baram Pillai [(1977) 106 ITR 292 (SC)]

Normally, even https://perfectloans24.com/payday-loans-fl/chipley/ in the event not at all times, in the case of in initial deposit, it will be the depositor who’s the prime mover while in the way it is regarding that loan, it’s the debtor that is the prime mover

`Loan’ and you may `Deposit’ aren’t similar into the definition but it’s true that in possible away from mortgage along with your situation regarding deposit, discover a relationship from debtor and you can collector between your functions offering money additionally the functions finding money. In the example of deposit, the latest birth of cash often is in the illustration of the latest giver and is also on benefit of the one who transferred the cash.The advantage normally becoming income interesting from a party who customarily welcomes places.

Particular loans could be deposits and some deposits can be loans but all the finance aren’t places and vice versa

The newest deposit may be having safe-keeping or just like the an excellent safety on the overall performance off an obligation performed by depositors. Borrowing is especially towards benefit of the latest borrower while the individual that lends the cash may also stand-to acquire and therefore by the generating passion to your matter borrowed.

In case of Kans Raj & Sons v. ITO [(2005) ninety-five TTJ 931 (Asr.)]it was held you to definitely ‘Loan’ and you may `deposit’ aren’t the same for the meaning and cannot feel inter-changed. Where in actuality the assessee, without stating the complete particulars of the fresh new put and you can as opposed to giving any details as to why he had been accepting the individuals deposits and you may as to why those individuals depositors have been and work out those individuals places with the assessee and just how men and women deposits were to end up being came back / paid down because of the assessee into depositors, had called the individuals places throughout the characteristics regarding current membership:

Stored one unless the new assessee got provided/provided the whole facts towards the AO during the time of investigations or during the time of penalty legal proceeding, when you find yourself providing his factor, it was hard to hold that those depositors have been with people current account towards the assessee or even the deposits with the assessee-agency from new depositors weren’t secure inside the meaning of mortgage or put once the considering within the point 269SS. And this, the degree of dumps from the depositors with the assessee were places when you look at the concept of section 269SS while the assessee had broken the new provisions off part 269SS.

And work out book changes of fund because of the assessee company that have brother question in place of and then make payment of cash, could not said to be violation or contravention off part 269SS and section 269T – Gururaj Small Roller Flour Mills v. Addl. CIT [(2015) 370 ITR fifty (AP &Telangana)]

• Target out-of point 269SS will be to stop purchase during the money; this isn’t meant to affect instances when a debt or an accountability appears because of book records –CIT v. Global Township Plans Ltd. [(2014) 367 ITR 433 (Delhi)] Ambit of section 269SS is clearly limited to purchase involving allowed of cash and not meant to affect instances when a loans otherwise a responsibility comes up due to book entries. New assessee displayed PACL because the an excellent sundry collector within its books. PACL purchased lands on the part of new assessee. PACL generated money to home citizens courtesy request drafts. This new AO figured purchase announced by the assessee amounted to that loan toward assessee and that no funds got introduced because of bank accounts of the assessee to possess purchase of countries. Stored there is actually no violation from part 269SS and you will punishment proceedings were to become quashed.