Set off against unsecured loan
This query is : Resolved
Alpesh Patel
(Querist)
01 March 2012
My balance sheet shows Rs. 1,00,000/- as Unsecured Loan from ABC. Balance Sheet also shows Plant & Machinery of Rs. 5,00,000/-.
Can i sale one Machine having WDV of Rs. 1,05,000/- to ABC and square up the Loan amount against such sale price? Is there any penalty u/s 296ss/st?
Can i sale one Machine having WDV of Rs. 1,05,000/- to ABC and square up the Loan amount against such sale price? Is there any penalty u/s 296ss/st?
01 March 2012
Dear Friend, You can settle your accounts by exchange of property provided that the net effect will be shown in your profit / loss account.There is no contravention of Provisions of Section 269SS of the Income Tax Act, 1961. Thanks
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