Deemed Dividend
This query is : Resolved
16 December 2009
Sir,
In one of the case, the assessee company refered as A Ltd, dealing in construction business has received advance as part payment for purchase of land from B ltd. One of the shreholder has substantial interest in A ltd and more than 10 % interest in B ltd.
By virtue of the fact the transaction has been catagorized as Deemed Dividend. But the advance is given in normal business prectice.
Can the said advance be considered as deemed dividend ?
if no can any one give reference of case law.
Thakns....
In one of the case, the assessee company refered as A Ltd, dealing in construction business has received advance as part payment for purchase of land from B ltd. One of the shreholder has substantial interest in A ltd and more than 10 % interest in B ltd.
By virtue of the fact the transaction has been catagorized as Deemed Dividend. But the advance is given in normal business prectice.
Can the said advance be considered as deemed dividend ?
if no can any one give reference of case law.
Thakns....
16 December 2009
Here companies are A Ltd and B ltd and if those are companies in which public are substantially interested, then question of 2(22)(e) does not arise. If they are closely held companies ,even though both being corporates, section attracts vide Bombay High Court's decision in
Sadhana Taxtiles Mills (P.) Ltd. v. CIT [1991] 188 ITR 318 (Bom.).
Sadhana Taxtiles Mills (P.) Ltd. v. CIT [1991] 188 ITR 318 (Bom.).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Change Of Karta In Case of Death
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Tax rate change regarding
- UDIN ISSUE
- TDS on purchase of under construction property from a reseller
- Non filing of I T Returns
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
