Atif (CA Final) (40 Points)
07 August 2008hi,
There is a Pvt Co. which has stopped its operations 5yrs ago, where as it is not liquadated. The exp's of this co. are in the nature of personal exp's of directors. and the source for these exp's is inter compnay deposits which are in the form loan given by other sister concerns.
The same procedure is being carried on yr after yr. and the Income Tax losses are being carried forward.
What is the correct treatment to be done?
Plzz clarify?
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 07 August 2008
Personal expenses can not be debited to the company's P&L Account. Writing back all thoseitems is the right thing to do.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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