Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: cpt :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT RATES :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: empanelment :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« General »
 Filing ITR just got easier for salaried class with CBDT's one-page form
 Why consumers should welcome GST
 Retailers need to file single GST return every month
 Aadhaar is must for income tax returns if you have one; Here's how you can file it online
 Will it be a tax haven above the law?
 Your mutual fund investment tax efficient? Here are 3 steps to ensure utmost efficiency for your portfolio
 Finally a goods and services tax. But what lies ahead?
 Tax May Rise On Outbound M&As, Indian Mncs’ Investments
 Filing income tax return? Do remember to claim benefits on your reimbursements
 Banks will have a hard slog ahead to get GST-ready
 Clarification regarding applicability of Section 16 (1)(a) of the Companies Act. 2013 with reference to cases under corresponding provisions of Companies Act. 1956

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