Shivani Kakkar (CS, CA - IPCC) (44 Points)
24 July 2010
Dear All,
A private limited Company has got the compounding of the offence done under section 297 and taken approval from RD for further transactions with the related parties.
My query is what can be done if for the particular year, company has exceeded the limits of transactions for which approval was granted. What are the possible measures?
Kindly advice.
Thanks & Regards
Shivani Kakkar
vivek
(CS)
(751 Points)
Replied 24 July 2010
No recourse available better reverse the transaction otherwise this may attract penal provisions as you have said you have done once Compounding so no further Compounding application in next three years allowed in any case.
Others views solicited.
Regards,
CAclubindia
