How we can show in the balance sheet

This query is : Resolved

CA.Kanhaiyalal Gupta (Querist)
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26 July 2012 A- BROTHER AGE 28 IN MUMBAI
B- BROTHER AGE 42 IN UTTAR PRADESH
C-MOTHER AGE 69 IN UTTAR PRADESH

"A" TRANSFER RS. 600000 TO "B" ACCOUNT FOR THE PURPOSE OF PURCHSES A PROPERTY IN UTTAR PRADESH
BUT PROPERTY PURCHASED ON THE NAME OF MOTHER

HOW WE CAN SHOW ALL THE ENTRY IN BALANCE OF MR. "A" & MR. "B"

"A" & "B" IS THE INCOME TAX ASSESSEE BUT MOTHER IS NOT A INCOME TAX ASSESSEE

Amol S Joglekar

Amol S Joglekar (Expert)
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26 July 2012 This will amount to BENAMI transaction under Income Tax. The transaction is banned / disregarded under Income Tax. So far as A's books of accounts are concerned it can partake the nature of advance given.

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Surrender (Expert)
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26 July 2012 Mother can purchase property with borrowed funds from A ?
Such borrowing by mother from Son can be genuine too, as it is in this case !

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Surrender

Surrender (Expert)
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26 July 2012 Bank Account of B could at best be a convenient conduit for transferring funds from Mumbai to U P for Mother, needing such funds for acquiring house property; B will explain the credit entry in his Bank Account contra the debit(withdrawal) for purchase by C