Regarding conversion of a partnership firm into a company

This query is : Resolved

yogesh mahajan (Querist)
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27 August 2009 Dear Friends,
There was a partnership firm M/s ABC & Co.
which got converted into a public ltd. company ABC Ltd.
My query on this is the firm before conversion has many unsecured loans from various parties. Now after conversion these unsecured loans transffered to the company on their balances.
Whether such transfer could be taken as violation of Sec. 269T of the Income Tax, 1961, in such a way that loan is taken otherwise than a account payee cheque?

If yes, then what is the remedy avialable?

Please solve at early as possible......

chetan soni

chetan soni (Expert)
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27 August 2009 originally it was taken by account payee chq. right, then there is no problem in transferring the same to ltd company.

But my friend, this will considered as public deposit u/s 58A of the companies act.
Check the conditions & limitations also.

yogesh mahajan

yogesh mahajan (Querist)
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27 August 2009 Dear friend I appreciate your answer and I am greatful to you.
As you told, origanally it was taken via account payee cheque.

Are you sure about consirdering the same as public deposit??
ok then what should be the adequate disclosure & procedure to be adopted?

Please reply..

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