22 June 2010
Dear Sir, In a Private Ltd company, the Managing Director who is also a shareholder, taking money from company and deposit. The company classifies, the M.D A/c under the unsecured loans. Assume all transaction such as deposit and withdrawal by M.D is cash in excess of Rs. 20,000/- Query: 1. Whether 269SS & 269T will hit for this deposit & withdrawal? 2. Whether it is in the nature of Deemed Dividend u/s 2(22)e? 3. The company taken money from M.D (Deposit) in excess of cash Rs. 20,000 can be construed as amount borrowed on hundi u/s 69D?
CAclubindia
