Amount paid by firm to partners or vice versa is not a loan

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. Under the general provision relating to Partnership Act that partnership firm is not a juristic person and for inter relationship different remedies are provided to enforce the rights arising out of their inter se transactions, the issue about separate entities apart, it cannot be doubted that the assessee has acted bona fide and his plea that inter se transactions between the partners and the firm ...