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Deemed Dividend

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24 February 2010 Dear All,
My query is as below:
Mr A has 15% shareholding is X Ltd. X Ltd is a closely held co. X Ltd took loan from ABC Bank and given to Mr A as unsecured loan.

Whether this will be treated as "Deemed Dividend" u/s 2(22(e) of Income Tax Act 1961.

Thanks in Advance
Anand

24 February 2010 Because this loan given to Mr. A by X Ltd. not by ABC Bank, therefore it should be taxable as deedmed dividend u/s 2(22)e.

Regards!!!
Dinesh S. Adhikari



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