Interest free loan from NRI - regarding

CA.D.K.BAYYAREDDY (Chartered Accountant) (117 Points)

23 November 2008  

Dear Sir,

 

One of my client has taken a unsecured loan from NRI (who does not hve any income in india) for 50 lakhs and my client has repaid as per the mutual understanding agreement. All this transactions are through Bank. Now ITO in scrutiney, making an order by adding this unsecured loan as income and making the order. I have produced him the loan confirmation letter from the NRI and the bank statements of the both the parties which is matching ransactions with cheque nos.  Kindly suggest any case law or how defend if I go for appeal? Pls. advice