diversion of income

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..... Dear Sir/Madam The assessee, being the individual, is managing director in Pvt. Ltd. Having two members(directors), assessee himself and his wife. The co. sales its products to the some of their outside customer, who deposited the amount in the assessee s saving account. Then the assessee withdrawn the same and deposited in to the companies bank account. The reason behind this transaction is t .....

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..... hat, the assessee s (director) bank account has the facility of malty state money transfer. Therefore the assessee used his own saving account for the company s transaction and none of the amount utilized/applied for own purpose. The all sale and receipts are accounted for in the books of accounts of the company and company filled the income tax return for the same. Whether the amount such dep .....

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..... osited in the assessee s saving bank account is income chargeable in the hands of assessee (director)? If it is chargeable in the hands of assessee whether it will be double taxation i.e in the hands of co. as well as in the assessee (director) or not? Whether is it case of diversion of income overriding the title or not? Please suggest the case laws decided in this connection - Repl .....

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..... y By Rama Krishana - The Reply = I don't think the same would be taxable in the hands of individual director if the same has been shown in the books of accounts of the company. However, in view, it may be short term option, in the long term and in exceptional circumstances otherwise you would find difficult to justify that what was preventing you to get similar facility for company account. - .....

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..... diversion of income - Query Started By: - SANJAY PATIL Dated:- 17-2-2011 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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