cash balance

In our considered opinion, no prudent businessman would borrow funds on interest and keep his own funds idle. Besides, (he transaction of loan is also not third party transaction but the funds borrowed from the Indian Overseas Bank by the sister concern have been taken as loan by the assessee without any business necessity because its own funds have remained idle throughout the year. The assessee has also admitted that the funds were kept idle and not utilized during the.. Full Article

When the assessee-company, a builder and developer of lands, resorted to cash borrowing in violation of section 269SS only because of the advantage which the ready cash back-up would give to it in negotiating the purchase of agricultural lands for development, penalty under section 271D would not be leviable on the facts and in the circumstances of the case. Full Article