X (P) Ltd has two directors namely A & B. The Direcrors have separtely individual firms and the Company went into the contract with the A & B for the services render in their individual capicity. The Comapny has given the advances for the same.
Whether Section2(22)(e) attracts?
Is there any case law for the reference?
as per my view
it is a advance against a separate contract not as advance to a director as a specific advance
so 2(22)e shall not apply.............
but plz confirm also......
2(22)e shall not apply
| Originally posted by :Thandle Shashishekhar | ||
| " | X (P) Ltd has two directors namely A & B. The Direcrors have separtely individual firms and the Company went into the contract with the A & B for the services render in their individual capicity. The Comapny has given the advances for the same. Whether Section2(22)(e) attracts? Is there any case law for the reference? |
" |
No, Sec- 2 (22) (e) is not applicable to this business transaction.
it is a case of deemed ddvident in the hands of firms, as decided in
JAMNADAS KHIMJI KOTHARI VS CIT
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