query of deemed dividend sec2(22)(e)

If a pvt. company provides security to a bank, on the basis of which the bank gives loan to a director who is also a majority shareholder, would the loan amount be considered as deemed dividend ?...

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I think 2(22)(e) only covers direct loan paid by a closely held co. to the extent of accumulated profits and it do not cover guarantee paid by company.  In your case as the loan is paid by bank on guarantee of co. it should not be covered under 2(22)(e).

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