Transfering money from one bank to another bank

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2013 sir,

I am running a partnership company ( 3 Nos.)

I have taken a loan from 3 Banks. For turnover hike purpose and only bank purpose I have taken 5 lakh from one bank and transfer to another bank and to another bank and the same repeated (around 10 times). Now,My bank transaction is high it is only for bank purpose. ( which is only within India but different banks).

Is it wrong as per income tax act? or money laundering or any another issues are there ?

What is the pros and cons. Kindly advise.

Thanks

Pande

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 well this amounts to cheating banks by giving false information to raise working capital loans.

Repeated revolving money could be flagged in Annual Information Report. So yes, AO can ask question on the same. And you may have a difficult time in explaining the actual transactions to the AO.

Also, once AO may gets into depth of all this, he/she may use documents submitted to banks to claim that you have shown lesser turnover.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2013 Thank you sir, I got information.

One more question in the above is,
as per Income Tax Act any act can be suited to pay tax ? or penalised to partners or partnership firm can be in problem .

Thank you sir.

Pande.

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