Loan return (Taxation)

This query is : Resolved

Author : Anand

PRO CHAT CALL

Posted On 20 May 2012 at 22:43

I had lent Rs. 5 lakhs to a relative via cheque for helping with his business. There is no loan document but he has signed and acknowledged receiving the same and depositing the cheque.

Now, after 2 years, he has not returned the money to me as promised and we are not on speaking terms. I sent him a legal notice to which he claims he returned the money in cash as I demanded it in cash. This is false.

I am trying to file a civil suit for loan recovery. In addition, can I also report him to the Income Tax u/s 269T and 271E as he claims to have returned money greater than 20,000 in cash? The alleged return is actually false - can I still mention it to Income Tax and force him to admit it is false.

Thanks.

Expert : R.K Nanda

PRO CHAT CALL

Posted On 20 May 2012 at 23:19

File recovery suit in civil court for which

maximum time is 3 years and do not waste any more time.

Author : Anand

PRO CHAT CALL

Posted On 20 May 2012 at 23:24

Thanks - I am doing that already. Please answer my IT question.

Is a criminal case also made out?

Expert : R.K Nanda

PRO CHAT CALL

Posted On 20 May 2012 at 23:25

No, criminal case is not made.

Expert : Thangapandian

PRO CHAT CALL

Posted On 21 May 2012 at 02:22

y not? criminal complaint also can be made out., but its according to the cause of actions of your case.,

and as of your statement your case is too weak., either civil side or criminal side.,

-tom-

Expert : adv. rajeev ( rajoo )

PRO CHAT CALL

Posted On 21 May 2012 at 05:51

No criminal case because it is civil nature. You will have to file civil suit for recovery of money by giving notice. Limitation to file suit is 3 years.
Dont worry about income tax. You first see to recovery your money

Expert : malipeddi jaggarao

PRO CHAT CALL

Posted On 21 May 2012 at 06:50

Agree with Mr.Rajeev. Here criminal case is not possible there is no cheque return. One good thing that he has acknowledged the receipt of money from by stating that he has returned in cash. If you file a civil suit for recovery the burden of proof rests on the payer that he has actually paid in cash. As advised by Mr.Rajeev no need to bring Income Tax matters on your own. They will surface during the trial of the case.

Expert : Suhail A.Siddiqui

PRO CHAT CALL

Posted On 21 May 2012 at 23:06

You may also get Notice U/S 148 of Income Tax Act,1961

Expert : Shonee Kapoor

PRO CHAT CALL

Posted On 22 May 2012 at 08:01

No criminal case is made out.

No action under Income Tax Act is made out, as it is a loan by way of instrument,

Just concentrate on civil suit of recovery.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Expert : C. P. CHUGH

PRO CHAT CALL

Posted On 22 May 2012 at 22:13

Agreed with Xperts, File Civil Recovery suit before it is barred by limitation. During your evidence you may call for his income tax records to prove liability towards you, which may not be required as the burden to proove that he has discharged his liability would rest upon him.