May 2025
Ss. 269SS, 271D– Where the loan sanctioned to the assessee was directly disbursed to its vendor by NBFC and the assesseerecognised the liability as a loan through journal entry, such transaction does not contravene section 269SS since the provision does not extend to cases where a debt or liability arises merely due to book entries.
12. (2025) 172 taxmann.com 739 (MumTrib)
Jeevangani Films vs. JCIT
ITA No.: 382 (Mum) of 2025
A.Y.: 2015-16 Dated: 6th March, 2025
Ss. 269SS, 271D– Where the loan sanctioned to the assessee was directly disbursed to its vendor by NBFC and the assessee recognised the liability as a loan through journal entry, such transaction does not contravene section 269SS since the provision does not extend to cases where a debt or liability arises merely due to book entries.
FACTS
The assessee was a partnership firm engaged in the business of film production, distribution, and related activities. It regularly dealt with a vendor M/s. “R” for distribution of film and other work related to promotion, etc. During financial year 2014-15, the assessee was sanctioned a loan of ₹15 lakhs from a Non-Banking Financial Company (NBFC). The said NBFC disbursed the loan amount directly to M/s. “R” through banking channels. The assessee also made a payment of ₹10 lakhs to the same party from its own funds. Consequently, the assessee recorded the loan from the NBFC in its books of accounts by way of a journal entry recognizing th
