Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: VAT Audit :: TDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: list of goods taxed at 4% :: form 3cd
 
 
General »
 Commerce Ministry to resolve GST related issues of exporters in FTP
 Property tax revision unlikely till April 2019
 Norms for filing tax are the same for residents and non-residents
 Data shows new tax regime widely adopted
 Confusion over GST persists: Wholesale grain market affected, sales fall by 40 percent in Pune
 Slow tax growth reflects companies' GST troubles
 What is PAN card? Why is it important?
 Govt to cut down executive discretion on tax laws
 Businesses can start filing July returns on GSTN from August 5
 Are you earning abroad? Know the tax rules
 Attention last minute tax filers! Know about key changes made by govt this year

Cash-loan from family in SOS not to attract a penalty: ITAT
August, 05th 2008

Taxman will not breathe on you if you have taken a cash loan from a family member, provided you can explain the reasons for doing so, as per a recent tax tribunal ruling.

As per Income Tax Act, loans in excess of Rs 20,000, even from family members, cannot be taken in cash or bearer cheque. Breach of this provision (269SS) of the Act attracts penalty same as loan amount under section 271D.

The Income Tax Appellant Tribunal (ITAT) recently cancelled the penalty imposed by the tax authorities on three relatives based in Saharanpur for violating this provision, while receiving about Rs 1.5 lakh each from their grandfather through bearer cheques to start a business venture.

Siding with the plea of these individuals to cancel the penalty imposed by the tax official, the tribunal said, "the transaction between the assessee and his grandfather can be viewed as financial help coming from elders in the family".

Taking a decision in favour of these individuals and quashing the assessing officer's order to impose penalties, the tribunal said ," After all, transactions between the assesses and their grandfather is to be viewed as a financial help coming from elders in the family."

In fact, the Delhi bench of ITAT added that an assessee or any individual taxpayer cannot be presumed to have knowledge about the intricacies of tax laws, as in this case.

The ITAT added that for assesses, it was just a technical breach and so penalty cannot be levied for such technical or venial breach.

It added that the amount was recieved by way of bearer cheque which showed the urgency of funds and " hence, (the assessee) was unable to route such transactions through bank. In a way, it can be considered as a reasonable cause withing the meaning of Section 273B of the Act."

Section 273B provides that no penalty under can be imposed for taking loan in excess of Rs 20,000 in cash or bearer cheque, if the assessee proves that there was a reasonable cause for doing so.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions