Chit fund satisfies the principle of mutuality and the transactions of the participators do not give rise to any taxable income or allowable loss - Soda Silicate vs CIT 179 ITR 588 - Kanga and Palkhiwala - 2014 edition - page 678 .

Casual Transaction with relatives and bonafide belief -not penalty for 269SS,269T

•Casual transaction with relatives and bonafide belief and genuineness constitutes reasonable cause—no penalty. Sunil Kumar Goel  315 ITR 163 P&H

 

269SS,269T not applicable to book entry

Acceptance or repayment through journal entry do not attract section 269SS or 269T: Acceptance or repayment through Journal Entry would not come within the ambit of the words ‘loans or deposits’-section 269SS applies only where money passes from one person to another by way of ‘loan or deposit

•’[CIT v. Noida Toll Bridge Co. Ltd. 262 ITR 260 (Del.)]

Amount paid by firm to partners or vice versa- 269SS,269T not attracted

Amount paid by firm to partners or vice versa- is payment to self and does not partake the character of loan or deposits in general law. Provisions of section 269SS are not applicable to such facts( CIT v. Lokhpat Film Exchange (Cinema) [2008] 304 ITR 172 (Raj.)