loan taken

Q. Regarding non payment of unsecured Loan

 

 

 

If the Assessee has taken the loan of Rs.5 Lacs in the year 2002 and it is not still paid
and the same party is also not traceable in that case if the case was selected in Scrutiny
Can the Assessing Officer add this as Income of the Assessee .Please advice to us

 

Q. Regarding Unsecured Loan taken and Payment  
If the Assessee has taken the loan of Rs.2 Lacs in the year 2003 and it is not still paid
and in this year if the loan is paid and confirmation not received from the party and in that case if the case was selected in Scrutiny. What action to be taken by the Assessing Officer please advice to us
 
 
 
Replies (2)

Mr. Gopal Krishanan

First of all U hav to prove that U hav taken loan from so and so. If U fail to prove it may be treated as unexplained Cash Credit u/s 68 of I T Act, Onus is on U to prove it. Secondly AO power has been restricted to 6 yrs from the end of A.Y. in which U accepted the loan. beyond that he can not open yr. case and can't make addition in income. If U r able to prove the Loan received by U and it because of Limitation Act, Your creditors is not able to sue U can write off the same in yr. capital A/c.There will not be tax.

Surana,Chennai

9952967237

Bang on Surana ji, cant agree more. Just wanted to add that you can show that the amount was received by chq(if it was) and provide the AO his PAN no. That will be sufficient from your part. This case could have been opened uptil 31.03.2009 and therefore now you can capitalise this amount without any tax liability.

 

As regarding your second question, provide the PAN no. to the AO and he will issue notice under 133(6) to the party for his confirmation and your job ends there.

Regards

Piyush

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