Wednesday 2 September 2015

AO couldn't treat inter-corporate loan as deemed dividend just because director was common sharehold

IT : Where director of Company A holding 40% equity was also holding 90% share in Company B from which Company A took loan, since Company A itself was not registered dealer of Company B, condition precedent for invoking section 2(22)(e) to make addition of loan amount in hands of Company A as deemed dividend was not satisfied

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