Mr. X is a director cum shareholder (holding more than 10%) of Two Pvt. Ltd. Companies (both are Closely held co.). One of the Pvt. ltd co.(1st Co.) given a loan to Mr. X's son Y and Mr. Y has given the loan to another pvt. ltd. co.(2nd Co.) in which Mr. Y hold the designation of General Manager. Both the co. having sufficeint amount of accumulated profit.
My question is these transaction shall be come within the ambit of sec 2(22) (e) Deemed Dividend.
Please do the expert openion on this issue as early as possible.
CAclubindia
