Querry on 269SS

This query is : Resolved

paresh zatakia (Querist)
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12 August 2009 Dear Colleagues,

Mr.A paid Rs.50 lacs as advance for buying property.Before agreement he thought of buying the property in pvt ltd co.Therefore he got a pvt ltd incorporated and made agreement for property purchased in the name of pvt ltd co.Amt of Rs.50 lacs paid by Mr.A as advance was trated a part of the considearation.

The amt of Rs.50 lacs was treated as unsecured loan in pvt ltd. Co.
Is there any viaolation u/s 269SS since it will be acceptance of laon by book entry?
Regards
c.a..paresh zatakia

Abhishek Mohta

Abhishek Mohta (Expert)
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12 August 2009 269SS comes into picture only and only if the loan taken is in a mode other than account payee cheque.

Here the amount of Rs. 50 lacs paid shall be in account payee cheque (assuming it as not mentioned in the problem). Thus 269SS wont apply.