The ITAT held that where a partnership firm repays loans to its ...

Partnership Firm Loan Repayments via Journal Entries Exempt from Penalties Under Income Tax Act.

January 8, 2025

Case Laws Income Tax AT

The ITAT held that where a partnership firm repays loans to its partners by journal entries/book entries, such transactions are not covered u/ss 269SS/269T of the Act, as a partnership firm is not distinct from its partners under general laws. The repayment by journal entry falls outside the ambit of section 269T, and such transactions are entitled to immunity u/s 273B, which stipulates that penalty u/s 271E is not imposable if there was reasonable cause for failure to accept/repay loans/deposits in prescribed modes. The journal entries were made in bona fide belief based on judicial precedents, without any finding of tax evasion intent. Consequently, the assessee's appeal was allowed.

View Source

← Previous Next →

The ITAT held that where a partnership firm repays loans to its ...

Partnership Firm Loan Repayments via Journal Entries Exempt from Penalties Under Income Tax Act.

January 8, 2025

Case Laws Income Tax AT

You may also like:

Penalty u/s 271D - entries through journal entries - Violation of provisions of section 269SS - round tripping of funds to evade taxes - proof of reasonable cause u/s...

Penalty levied u/s. 271D - transactions through journal entries - assessee shall be deemed to have had reasonable cause to receive the deposits/loans through journal...

Penalty levied u/s 271D and 271E - accepting deposits by way of journal entries - assessee had accepted/paid loans in contravention of provision of section 269SS/269T -...

In deposit of trading receipts of the firm in the bank account of the partner, the assessee has not violated any of the provisions of the Income Tax Act, even if it may...

Additions u/s 68 - Unsecured loans - partnership firm - Making addition of unsecured loans relating to the partnership firm in the hands of the assessee is bad in law...

Exemption u/s 10(26) - Exemption to individual members of Scheduled Tribes - Whether a partnership firm, formed by individual partners who are entitled to an exemption...

Penalty u/s 271D - The firm has accepted loan from the partners by passing journal entries and also explained sources. Moreover, the repayment of loan is made to a...

Penalty u/s 271D and 271E - creation/ assignment of debt and liabilities vide journal entries - These entries arise in the normal course of day to day business...

Proposed amendment enables recovery of existing liabilities under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 from seized assets...

Penalty u/s. 271D - assessee has repaid loans/ deposits from various sister concerns through journal entries, i.e., otherwise than account payee cheques/draft - though...

This case deals with the disallowance of expenditure u/s 14A of the Income Tax Act, which pertains to expenditure incurred in relation to exempt income. The key points...

Penalty u/s 271E - contravention of Section 269T - repayment by journal entries - penalty imposed u/s 271E deserves to be deleted - HC

Levy of Entry Tax - stock transfer price - validity of Equalized List Price (ELP), adopted by the appellant - As per Section 4 of the Entry Tax Act, the entry tax...

The summary highlights the key difference between the scope of total income under the Income Tax Act and the Black Money (Undisclosed Foreign Income and Assets) and...

Deemed income - Addition u/s 41(1) - cessation of liability - amount due to partnership firm - The said adjustment of transferring the loan into the capital is between...

Quick Updates: