Adjustment of loans against profits

Loan taken from directors is a liability and accumulated profits is also a liability of the company.  How one liability can be adjusted against another liability is not clear.  Do you want to write off the loan taken from directors?  In that case you will have to take NOC from directors and then credit the amount to P&L under the head 'other income'.  But this may create a problem in assessment of personal IT returns of the directors who had given loan.