Suppose a promotor buys an asset on behalf of the company & pays the amount in cash. The asset invoice is in the name of the company. Now if the company reimburses the promotor for the said expense through cheque then will that amount be covered u/s 2(22)(e) & declared as deemed dividend ?
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Is reimbursement covered u/s 2(22)(e)?
Replies (1)
when he has paid on behalf of company and later company paid reimburse him for the same..he will get his account settled and will not have any dr balances hence no dividend. and paying on behalf of company and later re imbursing at par doesnt attract provisions u/s 2(22)(e)
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