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CAN DISOCUNT COUPON BE DEEMED DIVIDEND????

This query is : Resolved 
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(Querist)
26 December 2009 Hi,

A company gives the discount coupons to its shareholders on purchase of its product. Can this would be hit by Section - 2(22)(a) or Under any other section of Income Tax Act, 1961.
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MAHENDRA KUMAR BAGRECHA

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MAHENDRA KUMAR BAGRECHA (Expert)
28 December 2009 Dear Mayank,
It is section 2(22)(e) which define deemed dividend. Discount coupons are nothing but a marketing way to sale company's products. If any loan or advance has been given to the directors or shareholders having substantial interest in the company, 2(22)(e) will attract. There are certain conditions to attract this section. This is depend on fact of the case also. You should go through carefully this section and fact of your case and then only you can decide it.
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