Cash advance-Deemed Dividend-269SS

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..... Cash advance-Deemed Dividend-269SS
Query (Issue) Started By: - deepak gulati Dated:- 2-1-2012 Last Reply Date:- 7-1-2012 Income Tax
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Income Tax
A major shareholder in a Pvt Ltd .....

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..... Company has received Advance in CASH from company and same is treated as Deemed Dividend in his Assessment, Can penalty under 271D ( regarding 269SS) be imposeed on this, particulary when in Assessme .....

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..... nt, it has been treated as Deemed Dividend and not loan. Reply By MOHAN S: The Reply: Mr.Gulati, Pl see Section 269SS and you will find that he deals with Acceptance of "Deposit" by any mode otherw .....

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..... ise than "account payee" cash. So primafacie, to attract there must be a "Deposit" In th epresent case stated by you, what the major share holder received from the company (in Cash) has already been a .....

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..... ssessed as Deemed dividend by the Assessing Officer invoking Sec 2(22) (e) of IT Act. Thus there is no deposit in the hands of the Shareholder. Incoem and Deposit are utually exclusive. What is receiv .....

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..... ed by him is Deemed Dividend and no question of "Deposit" arise. So ther can be no question of levy of any penalty u/s 271D.
Discussion Forum - Knowledge Sharing .....

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