LLP

Can a Pvt ltd Company give loan to LLP in which partners are relative of director and share holders of the company ? With reference to section 185(2) of companies act and 2 (22)(e) of income tax act - deemed dividend

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  Taxability of Issue of right shares at par by the Private Limited Company

The assessee is a private limited company engaged in the business of manufacturing of machinery required for construction activity. The intrinsic value of its shares is Rs. 150/- (Face value Rs. 10/-). The FMV of the shares is Rs. 200/-. The company is issuing right shares to the existing shareholders at par i.e Rs. 10/- per share. What are the tax implications of this transaction under Income Tax Act as well as Companies Act? Please Guide

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