deemed dividend section 2(22)(e)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2011 Assesse is Pvt. Ltd. whether advance paid for supply of material to substancial interested person(sister company) covered unders section 2(22)(e), deemed dividend? kindly forward case laws in assessee favour if any.... or guide me where to search for case laws?

CA ASHISH GUPTA

CA ASHISH GUPTA (Expert)
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05 January 2011 No, but there shall be actual supply of material thereafter instead of repayment.
CIT vs. Rajkumar (2009) 181 taxman 155 (Del)
In my personal view, please not enter in this type of transaction. There will be certainly a litigation.