Answers On Topic: Deemed Dividend
When lending company has deposited funds in a firm engaged in money lending activities for earning interest and such firm has advanced funds to substantial shareholders of lending company but such substantial shareholders have no control over the firm who has extended funds to substantial shareholders on interest, whether provisions of section 2(22)(e) could be invoked in the case of substantial shareholders even though there is no debit balance in the books of lending company to their account.
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When a private limited company makes an inter-corporate deposit with another sister company where a common shareholder holds more than 20% in both companies, whether provisions of deemed dividend u/s 2(22)(e) are applicable? What would be the implication of deemed dividend if debentures are issued by one company and subscribed by the other sister company?
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Deemed Dividend