refuse to add him as partner

2) show funds received from person as loan and pay interest on loan as suggested by CA

dont give him share of profits . dont admit him as partner

2) in your books of account show it as loan . repay the loan

If you are proprotor f the firm then nobody can force you to make it a partnership firm. Acceptance of loan does not enable the creditor to become partner of the firm.

Sharing of profit also does not make that man a partner.

However to avoid anomaly do make an agreement stating that it is not partnership firm.

If you are giving hi salary, then he is your employee.

In proprietor company there is no question of including anyone as just like a partner

As suggested by your auditor, you may enter into a loan agreement with him on the basis of interest at the rate agreed by both and start giving him interest and the loan repayment as per the agreed terms

I want never firm will go In partnership .I am also giving share in profit.Kindly provide me best advice

Dont give him share or make any record or habit of that nature if you are not interested to convert your proprietorship firm into partnership firm.

You can give interest to the amount received as loan.