Book adjustment entry passed allowed in it act

sec 44ada it assessess cash loan from creditor rs:20 lacs ledger balance cash loan to debtor ledger balance rs:15 lacs as per account records dt:31-03-23.
question:
1.assessess creditor ledger balance amount transferred to debtor ledger balance account adjustment book entry passed allowed in it act.
2.sec 269st,sec269ss,sec 40 (a) provisions applicable
Replies (5)
Quick Summary
This discussion addresses whether it's permissible under the Income Tax Act to adjust a creditor ledger balance with a debtor ledger balance, specifically when a cash loan of Rs. 20 lacs was received from a creditor and Rs. 15 lacs was given to a debtor. The key question is whether the creditor and debtor are the same person, as this would allow for adjustment. If they are different, the possibility of adjustment and implications under Sections 269ST, 269SS, and 40(a) are explored.

Provisions applicable
@ kollipara,
Ask Your question correctly...

Is there the both Creditor and Debtor is same person...??!

If Yes then You can adjust...
If No then How it's possible...??!
Creditor and debtor different persons
Then How can You adjust the balance...??
Transfer to bad debts account

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