Income tax-loan existed in balance sheet but payment made by unaccounted money. no source available

Harddik A Thakkar (Querist) 08 December 2016 This query is : Resolved
Dear Sir/ Madam In the balance sheet of an individual, loan has shown, but the repayment was made by unaccounted money. How to deal with this loan in balance sheet. Person wants to remove it from balance sheet permanently. What accounting and taxation matters taken into account. Can it be shown as Defaulter? What compliance and consequences should be taken into account. Thanks a lot

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Guest (Expert) 08 December 2016
" CA Club "of this same forum whose details are Just below in this thread would Properly Guide You.

Kumar Doab (Expert) 08 December 2016
The person that has paid the debt in lender's records is not defaulter.

Your I Tax consultant can answer you.

Harddik A Thakkar (Querist) 08 December 2016
Dear Kumar Doab sir

but how it can be settle now in books of accounts

Since party is not traceable and still it appear in balance sheet since payment made by unaccounted money.

Kumar Doab (Expert) 08 December 2016
Your I Tax consultant can answer you.

Regret I can't.

You may wait for the posts from other experts.

Harddik A Thakkar (Querist) 08 December 2016
ok thank you Kumar sir

Kumar Doab (Expert) 08 December 2016
Thanks for your understanding.

You are welcome.

R.K Nanda (Expert) 08 December 2016
contact tax lawyer.

Rajendra K Goyal (Expert) 08 December 2016
This is more an accounting problem.

For taxation angle, your tax consultant can help.

This forum does not provide guidance related to unaccounted money.

Hemant Agarwal (Expert) 09 December 2016
"Hardik Thakkar"

MY PERCEPTIONS:
1. You mention that "Person wants to remove it from balance sheet permanently" :
"IF" "unaccounted amount" was used to give Loan by an "individual" to third "disappearing" party, it becomes obvious that some "money laundering /benami transaction" has been conducted.

2. You mention that "but the repayment was made by unaccounted money" :
This means that the "disappearing party" has re-paid back the loan and then disappeared. This also means that AFTER "repayment was made by unaccounted money", the "disappearing party" now cannot be termed as "defaulter". Further Loan-Giver has no business /jurisdiction to declare the re-paid money of the "disappearing party's" as "unaccounted money". SURPRISING ! ! ! ! judgement.

3. LOGICALLY, the above is outside the realm of " CA Club " and not a accounting /tax issue BUT an fruitless attempt to set right a grossly illegal monetary transaction (ill-planned and gone wrong), more so when you mention that "Person wants to remove it from balance sheet permanently" more so since the same could have been simply written off as "bad /non-recoverable debt", further more so "AFTER" acceptance of purported "unaccounted money".

4. The above apprehensively, is a accounting Fraud & Cheating and hence a Criminal offence and very much within the realm of this Forum.

Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com

Guest (Expert) 09 December 2016
Dear Author Instead of being misguided by self made Income Tax Official Here Better Contact the "CA Club" of this same Forum.

Kumar Doab (Expert) 09 December 2016
Subsequent to the posts you may take up in person with a very able counsel.

Rajendra K Goyal (Expert) 09 December 2016
May move as advised bythe experts.

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