Sec. 2(22)(e)
This query is : Resolved
07 March 2011
Dear sir,
My client was having 8% of share holding of the XYZ Pvt. Limited. He received loan of Rs. 100000 on 1/9/2009. Company was having sufficient accumulated profit. So, Amount received by him is not to be considered as deemed dividend. But on 10/12/2009, he becomes share holder for 16% of share of XYZ Pvt. Limited. Now, ITO views that this shall be added to the assessee's income.
What would be the effect, whether sec. 2(22)(e) is attracted because of subsequent share holding of not lessthan 10%?
My client was having 8% of share holding of the XYZ Pvt. Limited. He received loan of Rs. 100000 on 1/9/2009. Company was having sufficient accumulated profit. So, Amount received by him is not to be considered as deemed dividend. But on 10/12/2009, he becomes share holder for 16% of share of XYZ Pvt. Limited. Now, ITO views that this shall be added to the assessee's income.
What would be the effect, whether sec. 2(22)(e) is attracted because of subsequent share holding of not lessthan 10%?
07 March 2011
The words used in the referred section is 'who is beneficial owner of shares' and not 'beneficial owner of shares at any time during the year'. It may therefore, be noted that the shareholder should have 10% voting power ON THE DATE THE ADVANCE OR LOAN IS GIVEN TO HIM/ HER. The inference is, the ITO's view will not sustain.
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
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR selection for salaries and capital gain less than L
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
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
