LOAN OF Rs. 400000/- IN THE MONTH OF JAN 2017

This query is : Resolved

PARSRAM (Querist)
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03 May 2021 AS I HAVE GIVEN LOAN OF Rs. 400000/- TO PROPRITOR SHIP CONCERN WHICH IS LIABLE FOR AUDIT
THE PAYMENT MADE THROUGH NEFT. IN THE YEAR 2017-2018 PARTY HAS INCURED INT IN HIS BOOKS AND ACCORDINGLY TDS HAS BEEN DEDUCTED AS PER NORMS AND LEDGER WAS PROVIDED TO ME.
AND THE SAME THING REPEATED IN THE YEAR 2018-2019.
AND LOAN WAS SHOWN IN AUDIT REPORT AND ALSO SHOWN 3CD AND 3CB.(AS APPLICABLE)
IN THE YEAR 2019-2020 THE PARTY HAS NOT DEDUCTED ANY TDS .
SO I HAVE APPROCHED HIM AND ITS CA IN THE YEAR 2020-2021 FOR THE SAME
BOTH SAID THAT WE HAVE WRITTEN OFF YOUR ENTRY IN CASH. SO DO THIS TREATEMENT ACCORDINGLY IN YOUR BOOKS.
I HAVE FOLLOWING QUERIES :-.
1. WHAT WILL THE CONSEQUNCES OF VIOLATING OF INCOME TAX LAWS AND TDS NORMS??
(FOR CA AS WELL AS FOR PARTY)
2.WHAT WILL BE ACTION OF ICAI DISCIPLANRY COMMITTE FOR THIS ?? IF AM LODING COMPLIANT WITH ICAI
3. THIS IS MY HARD EARNED MONEY WHICH I HAVE EVER WASTED. HOW CAN RECOVER THIS ??

I AM SO MUCH DEPRESSION SO PLEASE GUIDE ME. POINT WISE ANSWER NEEDED EXPERTS.
ON THE GROUND OF HUMANITY AND LAW JUSTICE PLS SUGGEST ME WHAT SHOULD I DO??
DUE TO LOCKDOWN I DESPRATE NEED OF MONEY.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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03 May 2021 1) 100% Penalty will be applicable for repaying loan in cash (or showing as repaid in cash). Also if tax not deducted at source (TDS), interest expense will be disallowed (as applicable) for the borrower. Auditor will be held liable only if he has not reported these violations in the tax audit report.
2) Since the money has been lent to the organization, I think you first need to file a civil complaint against the borrower in the court of law.
3) If you suspect wrongdoing by the Auditor too, you may raise a complain with the Disciplinary Directorate of ICAI.
Most of all, you need to be brave, determined and patient. If you have relevant documents in support, then definitely you will get a remedy from the concerned.