28 December 2009
IF a Pvt. Ltd. Co. Gives loans to its beneficiary owner (Aslo a director) and in return it is receiving the Interest @ 12% thereon also.
Then Whether such loans can be treated as deemed dividend in the hands of such director?
Then any supporting material of case law available....
28 December 2009
Yes, the language of the section is very clear. If a closely held company has accumulated profits; then to that extent amount advanced to the beneficiary directors will be treated as dividend irrespective of the fact that the company is charging interest thereon.
CAclubindia
