Unsecured loans

This query is : Resolved

Guest

Guest (Querist)

29 November 2011 under clause 24(a) and (b) of Form 3CD a tax auditor should report whether unsecured loans exceeding Rs. 20000 are accepted/ repaid otherwise than by cash -269SS and 269T

w.r.t to this if an assessee has 2 proprietorship firms doing different businessses in 2 trade names(so there are 2 p & L a/cs and 2 Balance sheets)and there is cash transfer between them under the head unsecured loans whould that be penalised?
In my view, it should not be penalised as finally the assessee is the same and income from both P& L a/cs go 2 same income statement

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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29 November 2011 Yes, Your view is correct at preparing final profit and loss account and the balance sheet i.e consolidated P&L a/c and consolidated Balancesheet the internal transactions would be nill. So no effect of loans taken and paid.
OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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