Applicability of section 297
This query is : Resolved
09 May 2009
ABC pvt. ltd having paid up capital more than 1 crore enters into contract with director relative for purchase of goods and not obtained the permission of central government.Further, company sold the goods to third party.
Now my question is whether this contract is void ? If so, then wht will happens as you know goods are already sold.
Now my question is whether this contract is void ? If so, then wht will happens as you know goods are already sold.
09 May 2009
Contract is not void perse (itself).
As per section-297(5) contract is voidable at the option of the board.
As far as CG approval is concerned yes there has been a violation.
As per my opinion compounding of offence would be an option u/s 621A available to you.
Views of other Experts solicited.
Best Regards
As per section-297(5) contract is voidable at the option of the board.
As far as CG approval is concerned yes there has been a violation.
As per my opinion compounding of offence would be an option u/s 621A available to you.
Views of other Experts solicited.
Best Regards
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is any professional CA is here please reply
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- Rental income gst and it purpose
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Management System (IMS)
- EPF FULL & FINAL RULES IN 2026
- Experts need help
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
