Deemed Dividend

This query is : Resolved

CA Namrata Shetty (Querist)
Follow

13 January 2009 At the tome of scrutiny of a pvt. company it was seen that a shareholder holding more than 90% holding had taken loan from the company. That loan amount was held to be deemed dividend u/s. 2(22)(e).Thereafter a notice u/s. 148 was issued to the shareholder, who in response to same filed a revised return and paid tax in relation to the amount held as deemed dividend.Against that revised return notice u/s.143(2) was issued.Assessment was completed accepting the total income as per revised return.But now A.O.has levied penalty for concealment u/s. 271(1)(c). Is A.O.'s contention right? How can the assessee cancel the penalty levied?

K V Subba Rao

K V Subba Rao (Expert)
Follow

13 January 2009 Visit
http://www.financialexpress.com/news/loans-as-deemed-dividend/70640/