18 June 2008
Cash is Short in the books and expenditure is there up to 4 lacs which was done from the personal account of director what r the sources keeping in view income tax act. unsecured loan etc. i can bring cash in the books
18 June 2008
that cash may bring as share application money from director if the share capital is authorised to that extent.If you do like this you may avoid penaly but you must allot the share to that extent.
In one HC judgement,it was held that,share application money shall be treated as deposit hence if you not allot the share ,cash credit would attract penalty u/s 269SS
19 June 2008
Authorized capital is already exaushted. Now can application money be taken which togather with paid up capital exceeds authorized capital. if it is shown as loan from director then how we can escape from penality of 269. other thing we are capitalizating all expenditure because the company is in the gestation period. we are not claming these exp. as revenue expenditure. then whether sec. 269 applies. what can i do so that i can capitalize the whole exp. and no penality is attracted. plz suggest
21 June 2008
The suggestion by CA Bishan is suitable for your situation, where pre-operative expenses are being incurred by cash.(The situation is somewhat in your favour as there is no standardised expenses being incurred , because the commercial activites are not commenced) This unsecured loans can later be converted to SAM and then share capital.
CAclubindia
