a private limited is a partner in a partnership firm. so during the year it made a capital contribution in that firm. will investment by way of capital contribution be considered as deemed dividend?
4 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 25 April 2023
Check if the firm is shareholder in the company?
If no, no question of applicability of the section.
DHRUV
(student)
(123 Points)
Replied 25 April 2023
the shareholders in private limited and other partners in the firm are same. so will not firm be covered as beneficial owner although it does not hold stake in the company directly?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 25 April 2023
Yes, but when it is capital contribution, and not advance or loan, the same can be negated.
sabyasachi mukherjee
(27574 Points)
Replied 30 April 2023
Fresh infusion of capital by way of promoters contribution in case they are majority to the stake.
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