Thanks Suraag ....

Friends, sorry to interrupt.  Company must have passed Board resolution at the time of taking loan from the director and the terms & conditions of the loan (including repayment period) must have been mentioned in the resolution.  If that is so, where is the question of passing resolution again at the time of repayment?

Section 68 of IT Act kaise picture mein aiya hai, pata nahin.  Agar cheque se officially loan liya hai, aur cheque se repay kar rahe hain, to bhi Section 68 lagega to jina muskil ho jayega.

@ agrwal pc.....

rightly said Sir ...

Section 68 of IT Act kaise picture mein aiya hai, pata nahin.  Agar cheque se officially loan liya hai, aur cheque se repay kar rahe hain, to bhi Section 68 lagega to jina muskil ho jayega.

 Ye section 68 m us situation ke liye keh rhi h ...when Miss Neha n Mr Ankur 

are saying ki resolution pass karne ki need ni h. No need to record minutes as well .......

Then Income tax officer has a right to ask ..." from where this money came from ...agar uska kuch record hi ni h to ... "

Section 68 is for unexplained money na ...jab explain ho jayegi situation to obviously Income tax officer ka koi role ni h. You are right in that context.

But just tell me na ....

This q is for Mr.Ankur n Miss Neha .....

"How can not company pass a resolution in the given case ?" How can the same be at wish of company to record or not ????????

I think section 68 has no reference with originally asked question and as far as requirement of BR is concerned, i fully agree with Mr. Ankur Garg and Ms. Neha Jain.

Best Regards

Importance of minutes in court of law as evidence

Considering the evidentiary value of minutes in the court of law it may be concluded that only relevant matters should be covered in minutes read with section 193(5). Maintaining minutes in the most authentic manner is the responsibility of company management. Minutes cannot be prepared as per the wish of Income tax or any other department.

As per my personal experience of handling day to day work strict internal control and responsible/transparent accounting from accounts department is enough to satisfy monetary transaction of director with the company and no department will ask you to show minutes for every transaction.

However if there is a lack of good internal control, then I would advise you to cover every activity or transaction in minutes.

It is not about wish of the company to record and not to record things in board minutes. Only the board meeting agenda items are part of board minutes. But repayment of loan taken from director cannot prima facie be considered as an agenda item. Likewise all the transaction related to debtors and creditors are not a part of board minutes. However a company is free to record things in its minutes.

It is mentioned that Section 68 is for unexplained money. But I do not understand one thing----kya minutes main recording sa money explain ho jayga??? If monetary transaction of company and director are false then mere recording in minutes are of no use as far as investigation of income tax department is concerned.

As mentioned earlier:

Regards

Originally posted by : Ankur Garg
	Considering the evidentiary value of minutes in the court of law it may be concluded that only relevant matters should be covered in minutes read with section 193(5).   However if there is a lack of good internal control, then I would advise you to cover every activity or transaction in minutes.   Only the board meeting agenda items are part of board minutes. But repayment of loan taken from director cannot prima facie be considered as an agenda item.

Very nicely explained ankur.... keep it up!!

I agree with Neha Jain and Ankur.

Section 193. Minutes of proceedings of general meetings and of Board and other meetings

• Every company shall cause minutes of all proceedings of every meeting

• Each page of every such book shall be initialled or signed

• minutes of proceedings of a general meeting, by the chairman of the same meeting within the aforesaid period of [thirty] days either by the same chairman of the meeting or the next chairman of succeeding meeting.

• The minutes of each meeting shall contain a fair and correct summary

• Minutes are considered as evidence of the meeting.

• Minutes are available for inspection of members.

Section 68 is for unexplained money. But I do not understand one thing----kya minutes main recording sa money explain ho jayga???

The minutes of meeting kept in accordance with the above provi­sions are prima facie evidence of the proceedings recorded therein (Sec. 194)

minutes once made and signed by the Chairman cannot be altered or corrected (Re Cawley & Co.). If any correction is necessary another resolution must be passed.

Further, only directors and auditors are entitled to inspect the minutes of Board meetings.

The auditors have a statutory right of access to the minutes of Board meetings.

If such resolution has passed , then obviously auditor has a right to ask why such is not recorded in the meeting ??????

company should contain record every resolutions passed thereto.

And about the authenticity .....

Sir  I just wanna give u an example ......

" If a person cheats in the exams and the teacher couln't trace that he cheated and accepts his sheet without any doubt and doesn't write anything over the sheet....

To examiner ko to khwab ni aa sakta na ki us student ne cheating ki hai "

To uske baad to us student par cheating ka koi accusation nahi laga sakta na ..............

Practical life is too different then the book and procedures . Filmo wala dialogue kafi true lag rha h .....

"aap tab tak honest ho, jab tak aapki beimani pakdi nahi jaati "
 

Or Aap is waqt mere se ye hi baat keh rahe ho.............Ab m apko is baat ka kya jawab du. AAp mere se bade or jyada samjhdar ho.  Ab aap khud hi iska ans socho .... kyuki ye question  hi unanswered hai na .........................

OK Ji..I Surrender....

And now the next thing about director thing ......

Director is a member of the company. Kal ko company wound up ho gayi ,uske loan dene ke baad ........

Aap keh rahe ho ...

As per my understanding there is no need to pass any specific resolution for repayment of Loan to director.

thik hai ji ..... Ab isi baat ko proceed karte hai .... company ne koi resolution pass hi nahi kiya ..and company got wound up. director ne bina resolution pass hue loan de diya ...as per ur saying ki ji resolution pass karne ki koi need nahi h. Director and board ne apki baat man li...thik hai ji. now .....

kal ko member , creditor , preferential creditor to sidhe sidhe kahenge .......

ki ji " ABC is director of company , he is member .......hume kya pata ki usne loan diya ya apna contribution diya ?? koi resolution to pass hai hi nahi ......."

Ab aap khud socho ...... 

Director pagal h ... jo wo apne liye koi security nahi rakhega ?

Originally posted by : Ankur Garg
	OK Ji..I Surrender....

Sorry Sir ....Surrender karne wale koi baat nahi h.. I am a student and  not a proffessional and shayad extra cautious thi because of this incident ...

A req to all seniors

I just want to clear my concepts.

To aapko hurt karne ya sad karne ka koi intention nahi tha. In case  I did even by mistake ......

Then I am really sorry.

Originally posted by : Neha Jain
	Does this mean by writing in minutes we can make or convert black money into white money and auditor should not intervene about the source of money which is the prima facie benchmark of unexplained money. Regards

Dear Neha ... I had given ur Board meeting resolution can be seen only by auditor and directors of the company. As they relates to the proceeding of the company ....

So obviously an auditor will check the supporting documents and vouchers.  If auditor founds any thing wrong ...

he will simply record the same in his audit report