banner_ad

Deemed Dividend

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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....
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
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.).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details