Section 297
This query is : Resolved
05 April 2011
Is sole proprietorship outside the purview of this sec.....if transaction are entered between a public ltd. and sole propietorship where directors and sole propietor are relatives..will it attract this section???
Is sole proprietorship outside the purview of this sec.....if transaction are entered between a public ltd. and sole propietorship where directors and sole propietor are relatives..will it attract this section???
05 April 2011
Hi...
A sole proprietorship firm has no seperate legal existence of its own. Hence, when a transaction is to be entered into between a Public Limited Company and a sole proprietorship firm of which a relative of the Director is the sole proprietor, it is in fact a transaction between a Public Limited Company and the relative of the Director. Hence, the provisions of section 297 will be applicable subject to the conditions and exemptions specified therein.
A sole proprietorship firm has no seperate legal existence of its own. Hence, when a transaction is to be entered into between a Public Limited Company and a sole proprietorship firm of which a relative of the Director is the sole proprietor, it is in fact a transaction between a Public Limited Company and the relative of the Director. Hence, the provisions of section 297 will be applicable subject to the conditions and exemptions specified therein.
05 April 2011
can u pls elaborate wht conditions and exemptions with a supporting case law or any refernce
thnx
thnx
06 April 2011
Udit is right. Soleproprietorship is nothing different from the sole proprietor himself. So when a company enters into a contract with a relative of a sole proprietor who also happens to be the director of the company, Section 297 will definitely be attracted.
06 April 2011
thnx jayashree & udit....is there any relevant case law supporting this point...
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
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Portuguese Civil Code IT Return
- Taxability of Partnership firm for FY 2025-26
- GST Rate for Catering Services
- IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH
- TDS AND ITR ISSUE
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
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
