1. Loan to shareholder having more than 10% shareholding in a closely held company qualifies as deemed dividend.
Additionally, the loan may be to a concern in which such shareholder has a substantial interest or may be to another person for the benefit of such shareholder.
Accumulated profits include Credit Balance in P & L A/c and also other items.
A comprehensive study of all facts put together is required to determine an amount as deemed dividend.
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