https://www.taxtmi.com/article/detailed?id=156 Mutual financial accommodation accounts among relatives and associates record reciprocal advances from a common cash pool or cashier and are not automatically formal loans; however, assessing officers may treat unexplained entries as unexplained credit and investigate source of funds, imputation or disallowance of interest disallowance, reconciliation and third party confirmations. Taxpayers can respond with explanations of mutuality, source evidence, confirmations, and production of books and bank statements to demonstrate that accommodations arose from capital or business cash flows rather than borrowed funds. en-us Sat, 06 Sep 2008 00:00:00 +0530 Mon, 08 Sep 2008 09:38:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=156 Mutual financial accommodation accounts among relatives and associates record reciprocal advances from a common cash pool or cashier and are not automatically formal loans; however, assessing officers may treat unexplained entries as unexplained credit and investigate source of funds, imputation or disallowance of interest disallowance, reconciliation and third party confirmations. Taxpayers can respond with explanations of mutuality, source evidence, confirmations, and production of books and bank statements to demonstrate that accommodations arose from capital or business cash flows rather than borrowed funds. Articles Income Tax Sat, 06 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=156