For e.g.: If a partnership firm say M/S. ABC has a loan of Rs.1,00,000/- from a party say Mr. X. Now due to some tension between the two parties such loan is not being set off. What will be the implications, if the firm ABC decides not to provide any more interest against such loan and stop repayment as it was being made earlier. Will it create any problem as regards to provisions of Income Tax or Corporate Law.
What is the time limit for Mr. X to claim his share of amount and if the amount remains unclaimed from Mr. X, then after what time and how can the firm ABC adjust its books to remove the said loan.
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