AMIT MISHRA
(Legal Professional)
(393 Points)
Replied 14 September 2011
Hi Pooja,
In your case the unsecured loan taken cannot be termed as a loan from a sister concern. A private Company is no doubt not covered under Section 372A and can accept loan from director or its members (even a company pvt. ltd) but here the association of persons and partnerships are outsiders and the money advanced would come under the purview of deposits which would be violation of section 3(1)(iii)
Thanks & Regards
Amit Mishra
BSamrish & Co.
New Delhi
CAclubindia
