02 December 2009
If the company is a closely held company and has accumulated profits, the said advance will partake as deemed dividend and no way out to escape from tax liability. To my understanding, there is no case law to contravene the situation.
02 December 2009
Either transfer shares of the assessee by way of gift (before the date of advance)to his family members; thereby reduce the holding of 10%.
CAclubindia
