Money lending business is exception to deemed dividend provisions

Court :Bombay High Court Citation : M/s Parle Plastics Ltd. (Taxpayer) [ITA No. 37 of 2002] Brief : The issue before the HC relates to certain provisions in the Indian Tax Laws (ITL) that provide for taxability, as dividend, of certain advances or loans made by a company to another concern when the lender/borrower have a common shareholder with substantial interest (deemed dividend provisions). However, advance or loan is not treated as deemed dividend if it is made by the lending company in the ordinary course of its business and the lending of money is a substantial part of the company’...