Dear sir...
is there any violation of provisions of either Income Tax Act, 1961 or Companies Act, 1956 regarding temporary loan given by a private limited company to it's sister concern companies ?
Please let me know..
Thanks and best regards,
Sajana.
Dear Sajana,
Its not a violation in any act to give Loan to sister concern, however, the
background of the nature of loan activity that is carried by the company shud be business
activity i.e.there shud be commercial expediency for advancing loan.
Regards,
CA Anu Bansal
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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