Section 2 (22) (e)

Yes it is deemed dividend.

Refer Case law of CIT V. P.K. ABUKUCKER (2003) MADRAS HIGH COURT.

Facts of case :- 

The assessee owned a premises which was being used as godown by the company in which he was a MD. In 2004, the building was heavily damaged in a fire accident and , thereafter, the building had to be reconstructed. the assessee leased out the ground floor of the building which he had reconstructed by then upto the ground floor, to the company on a monthly rent of Rs. 90000. in this aggrement it was also provided that on completion of the other floors, those floors would also be leased out to the company. For this company advance a sum of Rs. 100 lakhsto assessee which would be adjusted towards rent for premises. 

HELD : -

the fact that advance paid to assessee was to be set off against the future rents would not alter the fact that the assessee in the eye of law had received dividend from company during the relevenat accounting period. The amount of Rs. 100 Lakhs paid was clearly as advance which was to be set off against the rents payable in future. So this is deemed dividenf