Cash credit

This query is : Resolved

Debabrota Roy (Querist)
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10 June 2014 Dear Sir,
May i take cash loan below Rs.20000 from each individual and gather RS.10 lakhs from 510 individuals round the year and the said cash was entered in the debit side of cash book to purchase a capital assets Rs. 12 lakhs remaining 2 lakhs will be paid by account payee cheque.Then is there any violation of Indian Income tax Act 1961.
Please reply with SECTIONS AND RULES OF INCOME TAX LAW.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 June 2014 no there is no violation in this case.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 June 2014 Dear Roy,

I would suggest that you go through the judgment of Ranchi High Court in the case of Ajay Prakash verma to ensure that your case withstand judicial scrutiny.

please refer http://indiankanoon.org/doc/186698653/

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