Deemed dividend Section 2(22)(e)

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CS Vandana Kacholia (Querist)
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22 July 2009 U/s 2(22)(e) percentage of holding should be less than 10% but it should be maintained during the year or only at end of financial year??

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Vandana

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 July 2009 The act is silent on the issue raised. However clause (b) of explanation 3 to section 2(22)(e),for the purpose of substantial interest in a concern, used the words 'at any time during the previous year'. Therefore, according to the theory of harmonious interpretation, same analogy can be adopted for determining the % of shareholding also. But mind you, this is purely my personal understanding and not an advise rather an opinion.