Dear Frnz,
It is a Case of an individual who is a director in a company and in a a.y. 2007-2008 his current a/c balance with the company was credit at the closing date. But the commissioner is asking for tax as during the year once the balance reached to debit and he is treating it as a deemed dividend and asking for paying tax with interest and penalty.
Pls tell me when the closing balance is credit and the assessment of the company has been over, they could demand to shareholder to pay tax on such amount.
Pls guide us.
Regds,
JMD
CAclubindia
