29 April 2013
My client has received Rs.2.00 lakhs as unsecured loan from individual person during FY 2004-05. No interest is paid till date. The person is not available and he is not able to trace him. Now during the FY 2012-13 he wants to write-off this loan from books of accounts maintained by him. whether this is capital receipt or revenue receipt if it is written-off during the FY 12-13.
29 April 2013
This will be considered as capital receipt only. It is clearly a receipt from the unknown sources which was not accountable in your client's books.
CAclubindia
