Electronic WhatsApp evidence without authentication or independent corroboration cannot sustain an unexplained-investment addition based on third-part...
Mutual current-account transactions excluded from deemed dividend treatment where no fresh borrowing arose; unsupported unsecured-loan addition also f...
Advance not reflected as borrowing in the balance sheet does not acquire the character of financial debt; therefore classification in accounts is determinative of financial debt character and precludes claim as such. A loan expressly restricted by contract to land development and diverted the same day to purchase a personal luxury car constituted misuse of corporate funds and breached the loan diversion clause, rendering the transaction non-genuine and the claim bonafide-disputed. Directors role in permitting diversion engages responsibility for misuse. Where a transaction is found to have defrauded creditors, the claim may be rejected and the transaction declared void.
Advance not reflected as borrowing in the balance sheet does not acquire the character of financial debt; therefore classification in accounts is determinative of financial debt character and precludes claim as such. A loan expressly restricted by contract to land development and diverted the same day to purchase a personal luxury car constituted misuse of corporate funds and breached the loan diversion clause, rendering the transaction non-genuine and the claim bonafide-disputed. Directors role in permitting diversion engages responsibility for misuse. Where a transaction is found to have defrauded creditors, the claim may be rejected and the transaction declared void.
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