deemed dividend shall be in the hand of shareholder on the basis of their shareholding out of accumulated profit. i.e. in this case deeemed dividend shall be on propotionate basis.
proportionate basis would be applicable.
it is taxable in the hands of share holders on the basis share holding in the co. .
It is taxable in the hands of Share holder i.e. A and B on the proportionate basis of the advances made to them not on the basis of the share holding as per section 2(22)(e).
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