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Loan from partners
whether partnership firm can accept and repay loan from its partners.If yes, by using cash is possible?! or else needs to show as capital itself.?!?
Replies (2)
There is no restriction in Income Tax Act to give loan to parnership firm by his partners and visa versa.
Only keep in mind sec 269ss, interest rate.
Only keep in mind sec 269ss, interest rate.
According to me, it should be treated as capital instead of loan, since partnership firm has no separate legal entity nor there is a separate identification between the firm and the partners. Accordingly section 269SS or 269T shall not apply.
plz refer following case law also-
CIT v. Muthoot Financiers 2015 Delhi HC
plz refer following case law also-
CIT v. Muthoot Financiers 2015 Delhi HC
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