Money advanced towards purchased of immovable property
Description:
Where the amount is advanced by a company towards part consideration of a property intended to be sold by the assessee to the company, it cannot be said that the company has advanced money to its shareholders within the meaning of section 2[22][e] of the IT Act, merely because the seller of the property happens to be the shareholders of the Company in the other words, where the amount is advanced towards part consideration of the immovable property, it cannot be said that the amount is advanced by a Company to its shareholders.
Source:
1. www.tpcc.in
2.The Tax Referencer .Volume117. Issue No.2 10 January2011 Page No.49.
Our comment:
Advance given for purchase of land to a shareholder is not a “ deemed dividend”
