Deemed dividend u/s 2(22)(e) doesn’t apply to advances to director for commercial purpose: ITAT Bangalore

Smt. Rinku Chakraborthy Vs CIT (ITAT Bangalore) ITAT Bangalore held that advances given to the director by the company for commercial purpose is outside the ambit of provisions of deemed dividend as provided under section 2(22)(e) of the Income Tax Act. Facts- Assessee is an individual and declared her income under the head ‘salary, house property’ and ‘other sources’. The assessee is a director and shareholder in the company viz., DTDC Ltd. The assessee along with other 5 Directors has received a loan and advance amounting to Rs. 39,60,000/-, which was shown by the company as an advan...