Inter company Transactions

hi,

There is a Pvt Co. which has stopped its operations 5yrs ago, where as it is not liquadated. The exp's of this co. are in the nature of personal exp's of directors. and the source for these exp's is inter compnay deposits which are in the form loan given by other sister concerns.

The same procedure is being carried on yr after yr. and the Income Tax losses are being carried forward.

What is the correct treatment to be done?

Plzz clarify?