Loan to assessee cannot be treated as deemed dividend when Assessee given personal Security as collateral for loan of Company

Smt. Sabhapathi Padmasree Vs ITO (ITAT Visakhapatnam)

Introduction: Delve into the intricacies of the dispute between Smt. Sabhapathi Padmasree and the Income Tax Officer (ITO), as the Income Tax Appellate Tribunal (ITAT) Visakhapatnam addresses the tax implications of loans and advances under section 2(22)(e). The case revolves around the treatment of a debit balance in the company’s books, collateral security provided by the assessee, and the subsequent tax treatment of deemed dividends.

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