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???
udit sharma
(Expert)
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
Jayashree S Iyer
(Expert)
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
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
