Aplicability of sec.269ss and t

sunil (Querist) 21 September 2011 This query is : Resolved
Dear Sirs

I will be thankful if any body can clear by doubt which is

Whether sec. 269SS and T will attract on cash transferes between partnership firm and pvt ltd company in the same group

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Raj Kumar Makkad (Expert) 21 September 2011
Yes. Even if transaction is between the same group section 269SS is attracted.

prabhakar singh (Expert) 22 September 2011
i agree with Mr.Makkad.

Shailesh Kr. Shah (Expert) 23 September 2011
The Following persons are exempted from the purview of section 269SS:

a) Government ;
b) any banking company, post office savings bank or co-operative bank ;
c) any corporation established by a Central, State or Provincial Act ;
d) any Government company as defined in section 617 of the Companies Act, 1956
e) other notified institutions
f) where the depositor and the acceptor are both having agricultural income and neither of them have any taxable income.

Shailesh Kr. Shah (Expert) 23 September 2011
In the given query, Cash transferes between partnership firm and pvt ltd company in the same group is not exempt.

Vineet (Expert) 26 September 2011
Very much applicable. In fact the provisions have been brought in the statue to curb these kind of accommodation entries.