Assessee had substantial interest in a company. Company sold a flat to assessee of which a major portion of price remained unpaid by him at end of previous year. AO assessed the said amount as an advance to director and assessed as deemed dividend. CIT(A) deleted the addition however the Tribunal upheld the order of AO. On appeal High Court also up held the order of Tribunal. (AY. 2007 -08)
Bhagavathy Velan v. DCIT (2019) 264 Taxman 146/ 187 DTR 364/ 315 CTR 118 (Mad.)(HC)
S. 2(22)(e) : Deemed dividend-Substantial share holding–Sale of flat and a major portion of price remained unpaid by end of previous year–justified in treating said amount as deemed dividend. [S. 260A]