03 September 2010
If a company owes Rs. 100000 as salary payable to a director and during the year the amount has been adjusted as loan from directors. Then how should the amount of additional Rs. 100000 be shown under 269 SS? It is acceptance of Loan but not in cash or as cheque. So what should be shown?
03 September 2010
The book adjustment, of Rs. 1,00,000/- as loan in company's hands ,is not a loan and hence provisions of section 269SS will not apply to the said company. Citation :- CIT Vs Indore Plastics P ltd (2003) 262 ITR 163 (MP).
04 September 2010
Thanks to both the experts for the valuable response. So am I to infer that since the amount is not treated as loan,so the amount of Rs. 100000 has to be omitted from the Statement of 269 SS and T?
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