Supreme Court: Shareholder Loans Taxable as Income

Navnitlal C. Javeri Vs K. K. Sen (Supreme Court of India) Summary: In a significant ruling concerning corporate taxation and individual income, the Supreme Court of India has upheld the constitutional validity of provisions in the Indian Income-tax Act, 1922, that allow for the taxation of loans or advances made by certain companies to their shareholders as ‘deemed dividends’. The judgment, delivered by Chief Justice P. B. Gajendragadkar, with a dissenting opinion from Justice Raghubar Dayal, arose from a challenge filed by Mr. Navnit Lal C. Javeri against the Income-tax Officer. T...