We A Ltd have purchased debentures of Rs.5 Crore of B Ltd which is a loss making compnies. The A.O has issued us Summons u/s. 131 of the I.Tax Act 1961, egarding clarification, what have you Inspired to subscribed debentures of huige amount in a loss making company.
what should be the reply from our end in respect of the matter above.
Please co-operate.
If u had purchased debenures before it made loss den can specify this fact with evidence of dates availiable with u.
If already it was loss making and ull still purchased it knowingly den can say that u had invested on hope that it will start earning profit and loss was temporary in nauture...u say we jus hoped as v invested looking at the past financial status and after calculation of various ratios of previous year.
If ur intention was to hide money from taxing it...den do not mak any false statement sincoe summons issued under 131 means later u cannot change ur opinion as it ison an oath and requisitionning officer shall hav all powers vested in high court.
UR MATTER IS VERYSERIOUS DO TAKE HELP OF APPROPRIATE EXPERT IN DIS MATTER.
Above are just my views and suggestion wait for other experts on club to comment on it.
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