banner_ad

Deemed dividend as per Section 2(22)(e)


Last updated: 18 September 2008

Court :
SC

Brief :
Case Fact: Whether income earned by the partner from funds withdrawn from a firm, where the firm had received such funds from a Co. in which the said partner has substantial interest, as repayment of advances made earlier in the ordinary course of business, be treated as deemed dividend u/s 2(22)(e).

Citation :
2005) 146 Taxman743(CAL) Mukundray K. Shah Vs. C.I.T

Decision: Held by hon"ble court if company had made payment to the firm as a repayment for advances, made earlier, in ordinary course of business and such transactions were properly recorded in the books of all concerned parties, such payments could not be held to have been made for the benefit of the person receiving the income. Thus such income could not be held as deemed dividend u/s 2(22)(e).
 

CCI Pro

Comments




CCI Pro
Meet our CAclubindia PRO Members

Follow us
add to google news



Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details