13 October 2010
Whether waiving off of the whole or part of the loan amounts to repayment otherwise than by crossed cheque? pls quote a specific case law for the same
13 October 2010
The view of ICAI,though not on identical issue, is book adjustments by way of entries constitute repayment of loan otherwise than by account payee cheques.
13 October 2010
My earlier observation is with particular emphasis to audit under section 44AB of the Income tax Act,1961. But coming to income tax ,particulary,penalty provisions,I may support the following view. If the loan is transferred through book entries , backed by letter of the lender to do so and acceptance letter by the person in whose name same is being transferred , section 269SS or 269T can not be applicable. Citation:- Sunflower Builders Pvt Ltd Vs Deputy Commissioner Of Income Tax 61 ITD 227 (Pun-Tri)
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