Tag Archives: advance repaid in cash

No Penalty u/s. 271E of Income Tax on repayment of Advances in Cash : ITAT

By | March 29, 2019

The assessee has repaid in cash in advance received by it from its customers. We find that the Hon’ble CBDT in Circular No.387 of 6.7.1984 held “receiving advance and repayment of advance is a business transaction. The prohibition contained in section 269SS is confined to loans and deposits only and does not extend to purchase/sale transactions.” ITAT… Read More »