Cash Loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2010 For A.Y. 2008-09 Scrutiny is going on of Mr. A who has given Cash Loan of Rs, 1,99,000/- to Mr. K. Is there any problem for this assessment for this loan transaction ?
Is there any problem with Mr. K ? As per law 269 SS is applicable to Mr. K and not Mr. A. Any proble arise to Mr. K during the assessment of Mr. A.

Thanks,

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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20 July 2010 In the books of both the assessee the treatment should match. If a Mr. A is showing Rs 1,99,000 as cash loan then Mr. K should show Rs 1,99,000 as money borrowed. If Mr. K is paying any interest in his accounts then Mr. A should show it as his income.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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20 July 2010 AGREED, AT THE TIME OF ASSESSMENT , TRANSACTIONS ARE CROSS VERIFIED BETWEEN ASSESSEE AND OTHER PERSON BY SENDING LETTER FOR CONFIRMATION.

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