Penal provision in it

This query is : Resolved

Mitesh Joshi (Querist)
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09 August 2011 we have one pvt ltd company .Please give advice with latest case law.

Suppose Mr. A is Sundry creditor for Expense in our books & we are liable to pay something. Mr B is stand as Unsecured Loan in our books & we are liable to Pay.

If Mr A give me approval for due to him transfer to Me B Account (Cr).

We passed Entry as below.
Amount is Rs 2.5 crore.
Dr Mr.A
Cr Mr.B
have any penal Provision in I T act
Kindly advice with Latest Case Law

Regards
Mitesh

U S Sharma

U S Sharma (Expert)
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09 August 2011 despite of such transaction the nature of credits will stand same as previous,

after the entry the B will stand sundry creditors for expenses for amount of 2.5 cr and would stand as unsecured loans for balance as previous,

you can not change the "sundry creditors for expenses" to "unsecured loans"

i.e the accounting heads can not be changed unless the amount is paid by yourself.