Use of loans and advance and debtors to buy personal assets

This query is : Open

Vaibhav (Querist)
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17 January 2015 can a person prop. of a firm buy a residential house property using its trade debtors, Loans and advances money?

If so, please provide some case references..

Thank you

Madav

Madav (Expert)
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17 January 2015 you can do so on the Firm name...Proprietors are considered as individual in the eye of income tax..
Proper entries has to be made in your books for this

Vaibhav

Vaibhav (Querist)
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17 January 2015 Is there any section or case which support the same?

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