Hello sir,
Can a Pvt. ltd company having Mr. A as its director take unsecured loan from partnership firm in which Mr. A is partner..?
Darshan Dodiya (Student CA Final ) (392 Points)
11 March 2013Hello sir,
Can a Pvt. ltd company having Mr. A as its director take unsecured loan from partnership firm in which Mr. A is partner..?
Prashanth S K
(Practice)
(148 Points)
Replied 11 March 2013
Dear Darshan,
There is every possibility that the transaction falls under the deemed dividend as per sec 2(22)(e). Law creates a fiction by deeming these transactions as dividend as it is considered as a method by which the companies in which public are not substantially interested distribute their accumulated profits without paying DDT.
Regards
Prashanth.
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