Applicability of provisions of Section 269SS and 269T on receipts and repayments of deposits between Firm and Partners
August 31, 2008
The assesseee, being the partnership firm, had claimed that
"in view of the fact that partners and firm are not independent of each other and the firm is not juristic person, these transactions cannot be considered as intra person but were only for the purpose of carrying on partner's own business."
But the AO did not accept this explanation and rejected the plea of the assessee.
The Assessing Officer considering it to be intra party transactions of deposit otherwise then by way of cheque or bank draft inviting the provisions of Section 266SS and 267T and considering these payments and repayments were in violation of Sections 269SS and 269T imposed penalty under Sections 271D and 271E respectively for receiving the deposit in cash and payment in cash.
Assessee has challenged the action of the AO. ITAT held that the provisions of Section 269SS and 269T are applicable to the transactions between firm and partners but waived the penalty on the ground of bonafide belief.
Honorable, high Court of Rajasthan confirmed the order of ITAT.
For full text of judgment - visit
Monday, September 1, 2008
Section 269SS and 269T
MY BABY GIRL
STORY-OF-THE-WEEK
MY BABY GIRL
A beautiful baby girl was born to Radhika. The labour room attendants were extremely busy. Twenty one children were born in the hospital on that day. The doctors and nurses were heavily overworked.Radhika held the baby girl in her arms and caressed her soft hair. She whispered sweet nothings into her little ears. She breast fed her every two hours. The little baby would let out a little whimper and Radhika would attend to her in a jiffy. She changed her diapers and snuggled her close to herself to warm her, on this cold December night. On the third day, just before Radhika was to be discharged from hospital and sent home, she heard a commotion in the corridor of the ward. A woman was shouting, and some others were trying to quieten her.A few minutes later, a team of doctors walked into Radhika’s room. They looked tense. The senior doctor said, “Radhika, we need to do a DNA test for your baby girl and you. We need to take the samples.” Radhika was a little unnerved, “Why? What is it for?” “Err; it seems there has been a mix up. A lady has alleged that the baby girl that she had given birth to has been given to you and your baby has been given to her!”The words fell on her ears like a bombshell. She fainted. When she came back to consciousness, she could not speak a word. The DNA tests confirmed that the babies had indeed been exchanged. The doctor took the baby girl away and brought the other baby girl to her. Radhika held the new baby in her arms and cried endlessly. How much love she had showered upon the other child! All of a sudden she was told that the child did not belong to her! In a minute the child was whisked away from her arms. What a sea change her emotions had undergone. She did not love that child any more. Gone were the attachment and the affection. The realization took only an instant!This happening sets us thinking. We too, need to realize the truth about our worldly relationships. Our parents and our children are surely a part of our flesh and blood but we need to realize that the attachment is only up to the flesh and blood. Sooner or later children grow up and lead their lives independent of their parents. This is the way of the world. Each one of us came into this world alone and shall go alone too. Undue attachments tie us down. The sooner one realizes that we just need to do our duty and not get unduly entangled with emotions; the sooner one is able to free oneself from worldly attachments.
SANJAY TANDON
COMPETENT-CHANDIGARH
Wednesday, August 27, 2008
GOLDEN QUOTE
attractions.
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************
Over-the-Counter
OTC. A security which is not traded on an exchange, usually due to an
inability to meet listing requirements. For such securities, broker/dealers
negotiate directly with one another over computer networks and by phone,
and their activities are monitored by the NASD. OTC stocks are usually very
risky since they are the stocks that are not considered large or stable
enough to trade on a major exchange. They also tend to trade infrequently,
making the bid-ask spread larger. Also, research about these stocks is more
difficult to obtain. also called unlisted.
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************
Quote of the Day
My approach works not by making valid predictions but by allowing me to
correct false ones. - George Soros
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************
Tuesday, August 26, 2008
THE ROSE GARDEN
THE ROSE GARDEN
Spring had brought new life to this beautiful rose garden. Each bush was
abloom with roses of different hues, shapes and sizes. The roses on three
of the bushes got talking.
The roses on the first bush were blood red in colour. The second bush had
roses in yellow with pink streaks, but their unique selling point was their
shape. Each one of them was exquisitely formed. Each fold and each petal
was a sculpted masterpiece. The third bush had soft light pink roses known
as desi-gulab or wild roses. They were not at all pretty to look at, but
they were extremely fragrant.
The red roses said, "We wish we could be given to a beloved, for red roses
are the ultimate expression of love."
The roses on the second bush said, "We are so perfect, we should be
displayed for people to see and admire."
The roses on the third bush said softly, "We hope to be able to spread our
fragrance to more and more people."
The next day, the gardener came and cut the rose stalks. He sent them to a
florist.
The red roses were bought by a rich old lady who passed them on to an
expert garland stringer. The garland stringer chopped off the stalks and
leaves. She strung the roses into an exquisite garland, adding some
asparagus ferns and silver strings. Two beautiful garlands were made and
delivered to the rich old lady. She offered them with devotion to Radha and
Krishna at the temple. The red roses were happy for they had been used by
the lady as an offering of love, to none other than Radha-Krishna the
proverbial lovers. Many devotees saw the exquisite garlands and wowed at
them. The red roses swelled with vanity. The next day the priest removed
the garlands from the deities and cast them away in a corner of the temple.
The red roses cried, "Oh Krishna! Oh Radha! We are sorry for being vain. We
were too caught up in pride to enjoy our closeness with you. Please Lord!
Give us another chance to serve you. Please do not caste us away." The
roses beseeched the Lord, but no one came forward to listen to their cries.
Meanwhile the perfect yellow roses were bought by an interior decorator and
were used to design an enormous flower arrangement along with various types
of greens. The entire set up was placed on the centre table of the entrance
of a hotel. The roses were proud for they were the centre of attraction for
all to see. Busy executives rushed past, holding their cell phones, deep in
conversation. Others hurried past, glancing at their expensive wrist
watches and talking sixteen miles to a dozen. The yellow roses preened and
smiled, but only a few people had time to stop by and admire their
perfection.
Let us pause for a moment to look into the fate of the little pink roses.
That bunch was left sitting in the shop of the florist for days, for no one
seemed to want to buy them. Eventually the florist gave them away for free
to the girl who worked in the shop. The roses wept for they felt dejected
and useless. They were almost beginning to rot and their dreams of giving
fragrance to people seemed to be quite impossible to realize. The girl took
the roses home and gave them to her mother. The mother shook off all the
petals into a huge basin of water. The petals lay immersed in the water for
days. They added some powder to the water now and then so that it would not
start stinking due to stagnation. Some days later she carefully removed the
petals and pure rose water was left behind! She bottled the rose water and
gave it to the priest in the temple. The priest used the fragrant rose
water to wash the feet of the Lord and also to sprinkle on devotees to
shower blessings on them. The roses were so happy that they literally wept
in devotion!
In the corner of the temple the repentance of the proud red roses had
finally touched the heart of the Lord. A man saw the wilting red garlands.
He picked them up and put them in the sun to dry along with many other
flowers that had been laid out for drying. When the flowers were totally
dry, they were crushed to a fine powder and some glue like substance and
some oils were added to them. A group of young workers were deputed to
hand roll the mixture onto fine sticks. Aggarbattis were made! They were
used in the temple to sanctify the area with their aroma. The red roses'
vanity was burnt away and they were reduced to nothing, but they were
happy!
What about the perfect yellow roses? They spent all their life waiting for
recognition and admiration. Eventually they wilted and the hotel cleaner
dumped them into the garbage along with the rotting peels of vegetables,
egg shells and chicken bones. Even their cries could be heard by no one.
Here is some food for thought. The end that you eventually meet with
depends upon the road you choose to take for the journey. The red roses
suffered a setback to their vanity but made up for it because they soon
realised their folly. The wild roses were focussed right from day one,
whereas the yellow roses thought about nothing, but the physical and the
mundane. Find your focus, that is of utmost importance. Perhaps you could
identify with either of the roses and in case you are on the wrong track,
this could just be the right time for you to change your track. Do you want
to end up giving fragrance to the world or do you want to end up in a
dustbin? The choice is yours!
When you came into this world, you were crying and all those around you
were smiling. Live your life such that when you are to go, you are smiling
and others are crying.
HAPPY KRISHNA JANAMASHTAMI!
SANJAY TANDON
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************
GOLDEN QUOTE
weapons you need are a smile and a loveable attitude.
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************
GOLDEN QUOTE
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************
CONGRATULATIONS TO CS !!!!
CS FINAL EXAM JUNE 2008.
JAB WE MET MEMBERS ARE HIGHLY PROUD ON THE ACHIEVEMENTS OF FOLLOWING
MEMBERS OF JAB WE MET .
NOW IT IS NOT ONLY JAB WE MET CA BUT ALSO JAB WE MET CS ! ! !
NAME QUALIFICATIONS
RAHUL 4TH RANK IN CS FINAL JUNE 2008, DOING CA FINAL
NITYA 22ND RANK IN CS FINAL JUNE 2008, CLEARED CA FINAL IN
MAY 2008
DEVESH CLEARED CS FINAL IN JUNE 2008, DOING CA FINAL
AKHIL GUPTA CLEARED CS FINAL IN JUNE 2008, CLEARED CA FINAL IN MAY 2008
WE HOPE IN FUTURE MORE MEMBERS OF JAB WE MET WILL COME UP WITH FLYING
COLORS IN WHATEVER FIELD THEY WILL JOIN.
ON BEHALF OF JAB WE MET : CONGRATULATION TO ALL !!!
SATBIR SINGH
PRESIDENT
MEMBER JAB WE MET CA
REDEFINING PROFESSIONALISM……
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************
futures contract
A standardized, transferable, exchange-traded contract that requires
delivery of a commodity, bond, currency, or stock index, at a specified
price, on a specified future date. Unlike options, futures convey an
obligation to buy. The risk to the holder is unlimited, and because the
payoff pattern is symmetrical, the risk to the seller is unlimited as well.
Dollars lost and gained by each party on a futures contract are equal and
opposite. In other words, futures trading is a zero-sum game. Futures
contracts are forward contracts, meaning they represent a pledge to make a
certain transaction at a future date. The exchange of assets occurs on the
date specified in the contract. Futures are distinguished from generic
forward contracts in that they contain standardized terms, trade on a
formal exchange, are regulated by overseeing agencies, and are guaranteed
by clearinghouses. Also, in order to insure that payment will occur,
futures have a margin requirement that must be settled daily. Finally, by
making an offsetting trade, taking delivery of goods, or arranging for an
exchange of goods, futures contracts can be closed. Hedgers often trade
futures for the purpose of keeping price risk in check. also called
futures.
************"LEADERS ARE THE READERS,READERS ARE THE LEADERS*************