It person cash loan from creditor rs:10 lacs ledger balance
Cash loan to debtor rs:15 lacs ledger balance as on dt:31-03-23 as per account records.
Question:
Assessess creditor ledger rs:10 lacs balance transfer to debtor ledger balance adjustment entry passed in books dt:20-07-23 allowed in it act and any penalty provision applicable in it act.
By cash loan, you mean money recived in cash or by banking channel?
If its by cash, it will be disallowed and there are penalty under 269S,T,SS etc.
If its by banking channel, then you can setoff balances of same party.
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