it will be treated as loan from c in the books of a. if c has 
deposited cash in its own account for D/D then there si no problem 
unless prov of sec 269ss will be apllicable on a

ca anchal
lucknow


On Thu, 04 Dec 2008 Jaysukh Mehta wrote :
>Dear  Members,
>
>
>
>
>
>My query is as under.
>
>
>
>A is a partnership firm.  It has taken agency from Company B. It 
>is
>
>Required to pay deposit of Rs. 5 Lakhs to Company B by 
>partnership
>
>firm A for agency.
>
>C a third party taking a demand draft in favor of Company B from 
>bank
>
>by depositing cash of Rs. 5 lakhs  and this draft given to 
>partnership firm
>A.
>
>Firm A send this draft to company B.
>
>In the books of partnership firm A  Deposit to Company B 
>debited
>
>and account of C is credited.
>
>
>
>My question is the amount of draft received from C third party 
>will be
>
>treated as Loan or currunt liabilities / creditor. If it is 
>treated as loan
>than
>
>provision of Section 269SS is applicable or not ?
>
>
>
>Thanks and regards
>
>CA Jaysukh T.Mehta
>
>Bhuj Kutch Gujarat
>
>>


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