Can a flat be purchased in the name of sharehloder of a comp

This query is : Open

chaitra (Querist)
Follow

05 July 2012 Mr X has purchased a flat in his name. He has also obtained a loan in his name for this purchase. Mr X is holding 60 % in his company Mr X Ltd. The payment of loan is being made by company only. As a result deemed dividend u/s 2(22)e is attracted. To avoid this, can we show that the company has purchased the flat , and it is held in the name of shareholder ?

We will disclose this fact in the notes. We will treat this as an investment and not claim depreciation u/s 32. Kindly advice

CA UMESHKUMAR R. ACHARYA

CA UMESHKUMAR R. ACHARYA (Expert)
Follow

08 July 2012
When flat is purchased in the name of X and Housing loan is also obtained by Mr X.
and Registration of documents with Sub-Registrar also indicates that Mr. X is owner of Property.

So in my opinion you cannot show Flat
in the name of company.

If you show as an Investment it will be only a window dressing.

Message likes : 1 times

chaitra

chaitra (Querist)
Follow

09 July 2012 Yes , it would be window dressing, but cant we apply the concept of beneficial ownership? We would pass a board resolution regarding the matter. At times the shares in other companies are held in the personal capacity of the directors of the original company, by applying the concept of beneficial ownership.?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vimlesh kumar

nitin

CA K GIRIDHAR

raval umesh

Suvigya Tiwari

Subscribe Now

Can a flat be purchased in the name of sharehloder of a comp

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

GST CONSULTANT

Manager- Finance and Compliance

Accountant

GST CONSULTANCY

CA Final