deemed dividend

Please state your facts clearly without mincing. This being an important provision, has to be dealt with carefully, in the manner that it is not understood as tax avoidance or shrewd form of evasion.

DID U MEAN

CO WRONGLY CREDIT THE SHAREHOLDER.---

shrinivas sir i am very serious about matter and not mincing . I query is relates to ..

pvt ltd  company has taken loan ( icici bank ) on the security ( immo Prop ) owned by its shareholder ( 99 % shareholding ) . before this shareholder has taken loan ( SBI ) on the same property . while disbursing the loan to copmany icici  bank firslty repaid  o/s amount to SBI ( this loan was in the personal name of shareholder ) .

hence in the books of company loan of icic is appearing and agsint which amount receiveble from shareholder is appeared .

now agsint this transaction Dy. Comm of Income tax has considering the sec 2 22 e -to be taxed in shareholder hands .

as on date of loan takeover - company has accumulated profits more than loan amount .

i am planning on following ground - requires your valuable opinion

 - this transactiion is entreed in ordinary course of business  ( as compnay requires funds for their busiess ) and hence transaction is not covered under provision of deemed dividend .

- payment was not made to shareholder by compnay . actually payment is made bu one bank to other . though payment is on behalf of shrehaolder but made in the interest of company to get additinal amount of loan to be used for business . ( business growth appeared in the said FY by 50 % )  

- compnay is in reuirement of funds and hence by doing such take over deal thier is no benefit passed on to  shareholder .

Please give you opinion ..

if u get the answer plz also tell me

CO &  SHAREHOLDERS BOTH R SEPRATE 

OKAY

NOW, HOW CAN BOTH TAKE THE LOAN ON SAME PROPERTY

company has taken loan from icici , icici bank has takenover loan from sbi old loan . sbi loan was over  by taking over by icici .

SIR

LET ME EXPLAIN, WHAT I WANT TO SAY

PROPERTY SHAREHOLDER KE NAAM HOGI TABI SHAREHOLDER NE SBI SE LOAN LIYA HOGA

AGAR PROPERTY SHAREHOLDER KE NAAM H TO CO. NE ICICI BANK SE LOAN KAISE LE LIYA?

OR AGAR PROPERTY TRANSFER KE LIYE OLD LOAN PAY KIYA H TO  TRANSFER KE AGREEMENT ME LOAN KISKO PAY KARNA THA CO. KO YA SHAREHOLDER KO

AGAR CO. KO PAY KARNA THA TO YE DEEMED DIVIDEND NHI HOGA

OR AGAR YE SHAREHOLDER KI LIABILITY THI TO YE DEEMED DIVIDEND HOGA UNDER SECTION 2(22)

IS IT SOLVED

OR DO U HAVE ANY QUERY......

thanks for your attention - loan taken by compnay by providing security which was in name of shareholder . their is nothing in the deal about sale of propoerty . it is just changing bank for enhancement of loan amount .