Deemed dividend applies only where there is ‘actual payment’ & not on transaction in kind

CA Pankaj G. Shah Deemed Dividend – For invoking provisions of Section 2(22)(e) there should be actual payment, existence of Reserves at the time of making payment – Credit sale is not ‘loan’ or ‘advance’ for purpose of S.2(22)(e) – ITAT Indore Bench Please find attached a recent decision of Parag Desai v. Addl. CIT (ITA 488/Ind/2013) by ITAT Indore Bench as under: The Assessee was a significant shareholder in a company – The company sold building to shareholder on credit – Department treated it as ‘loan’ or ‘advance̵...