Unsecured loan , Income Tax

[s k]

One Mr A has advanced an Unsecured loan of Rs 7.00 Lacs to M/s XYZ, a prop firm owned by the father of A in the FY 2005-06. In the FY 2006-07, the firm XYZ has repaid 4.5 Lacs and again took 2.00 Lacs from Mr A. However in the personal IT return of Mr A, these entries are not reflected due to omission on the part of Mr A? What is the remedy available to Mr A?

Posts / Replies

[Surender Gupta]

I think this issue can not be answered after reading the facts stated by you. You have to see many things. What you have presented in the balance sheet, whether you have paid tax on interest or not, whether the provisions of section 269SS and 269T have been complied with, when the return was filed etc. etc.

[DEV KUMAR KOTHARI]

As stated by you, there was omission of entries. The mistake of omission can be a bonafide / clerical type mistake. It can be rectified by filing revised P & l account ( if required to account for interest, if any), balance sheet to rectify mistakes, and in case of need revised return also to disclose income, if any which remained undisclosed. Such income can also be disclosed in subsequent year, if circumstances so require.