24 November 2012
xltd has given loan and advance of Rs. 20 lacs to miss. puspha who is shareholder with 15% holding in F.Y. 2009-10. x ltd having reserve and surplus of Rs. 96 lacs as on 31st march, 2010. now my querry is what is affect of same on both assessee i.e 1) on x ltd 2) miss Puspha.
two different condition: 1) if miss. puspha repaid loan amount in same year. 2) if miss. puspha repaid loan amount in next F.Y.
24 November 2012
Can't escape from the clutches of section 2 (22(e) even if loan is squared up in same or subsequent year. Supreme court decision is Ms.P. Sarada's case reported in (1998) 96 Taxman 11 may be referred.
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