09 May 2010
An individual is having a PROPRIETORSHIP firm.... Can he take loan in his firm from his own HUF? Proprietor of the firm and karta of HUF being the same? To be specific,won't the "AO", disallow such loan entries?
09 May 2010
Yes he can do so and the loan entries would be allowed. In the eye of Income tax, Individual and HUF are two different entities, and between two entities this transaction is possible.
CAclubindia
