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Treatment of tax liability on whom?
A person who have more than two credit cards of different bank which are in the name of person holding credit cards. This person also Director of two company. Any payments regarding purchase for personal or for company thereafter company reimbursed the same to the Director. Being an A. O. how assess the tax liability. Is it is a case deemed dividend u/s. 2(22) e of the Act. Or otherwise what treatment?
Replies (2)
Section 2 (22)(e) is applicable if any advance or loan to a shareholder, being a person who is the beneficial owner of shares holding more than 10% of shareholding.
As in the current scenario there is reimbursement of the expenses to the director incurred on behalf of the company cannot be termed as deemed dividend as per section 2 (22)(e) of ITA, 1961.
As in the current scenario there is reimbursement of the expenses to the director incurred on behalf of the company cannot be termed as deemed dividend as per section 2 (22)(e) of ITA, 1961.
What other action in the Act, following modus operandi is not admissible. What can I do?
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