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In the example of loan, although not, it is the debtor from the whose including or whoever need cash is cutting-edge

• It cannot apply to deals anywhere between a common organization and its particular users while the try felt like when you look at the Muslim Urban Co-operative Credit Society Ltd. v. JCIT [(2005) 278 ITR (AT) 246 (Pune)].
• It had been stored inapplicable to help you a purchase ranging from a strong and you will the couples once the is actually canvassed, nonetheless it try found to be necessary to decide the challenge just like the need was even if not appropriate inside the CIT v. Lokhpat Motion picture Replace (Cinema) [(2008) 304 ITR 172 (Raj.)].
• Truth be told there can not be a few legally other events given that ranging from a company and people because is baram Pillai [(1977) 106 ITR 292 (SC)]

Ordinarily, even in the event never, in the example of in initial deposit, it will be the depositor who is the top mover while in the truth out of financing, simple fact is that debtor that is the prime mover

`Loan’ and `Deposit’ commonly identical when you look at the meaning but it is true that in the actual situation out of mortgage along with your situation from deposit, you will find a romance away from debtor and you can creditor between the functions providing money therefore the events acquiring currency. Regarding put, brand new delivery of money can often be from the exemplory case of the fresh new giver and is also to the benefit of the one who deposited the bucks.The advantage typically are income of interest off an event whom customarily allows deposits.

Some finance is places and lots of places is money but all money aren’t dumps and the other way around

The put is also having safe-keeping or once the an effective defense to the abilities away from an obligation done by the depositors. Borrowing is mainly to your advantageous asset of the latest borrower while the person that gives the money may might gain and therefore from the getting appeal on the number lent.

In case there is Kans Raj & Sons v. ITO [(2005) ninety-five TTJ 931 (Asr.)]it was kept one to ‘Loan’ and `deposit’ are not identical inside definition and cannot end up being inter-altered. The spot where the assessee, instead of stating the entire ins and outs of the newest put and without providing one particulars as to why he was acknowledging men and women dumps and as to why men and women depositors was indeed while making the individuals dumps to your assessee and just how the individuals deposits would be to getting returned / repaid from the assessee into depositors, had titled those people deposits on nature out-of current membership:

Kept that unless the fresh new assessee got considering/provided the entire info to the AO during the time of investigations otherwise during penalty process, whenever you are providing their reasons, it was hard to keep that those depositors was which have one current membership to your assessee or the dumps to the assessee-agency created by the newest depositors weren’t covered in the meaning of mortgage or deposit because the considering in the part 269SS. And this, the degree of deposits because of the depositors to your assessee was indeed places for the concept of section 269SS and the assessee had broken the fresh arrangements off point 269SS.

And then make guide changes out of fund of the assessee enterprise with sibling concern in place of and then make payment of cash, could not supposed to be citation or contravention of area 269SS and you may part 269T – Gururaj Micro Roller Flour Mills v. Addl. CIT [(2015) 370 ITR fifty (AP &Telangana)]

• Target away from point 269SS is to try to prevent deal inside the money; this isn’t intended to connect with cases where a debt or an accountability appears on account of guide records –CIT v. Globally Township Plans Ltd. [(2014) 367 ITR 433 (Delhi)] Ambit out of point 269SS is clearly limited by transaction associated with welcome of cash and not intended to connect with instances when an obligations or a liability appears because of guide entries. The brand new assessee displayed PACL as the good sundry creditor within the guides. PACL ordered lands on the part of the fresh assessee. PACL generated costs to help you belongings customers as a consequence of request drafts. The fresh AO determined that transaction disclosed by the assessee amounted so you can a loan towards the assessee and this no financing had enacted as a result of bank accounts of your own assessee to possess purchase of lands. Stored there is actually zero violation out of point 269SS and penalty process was to become quashed.