https://www.taxtmi.com/caselaws?id=8019 A loan advanced by a company to a shareholder is not taxable as deemed dividend under section 2(6A)(e) unless the company has accumulated profits computed under the Income-tax Act. Accumulated profits must be determined by profits recognised for tax purposes, after deducting depreciation at the rates allowable under that Act, and cannot be fixed merely by balance-sheet figures or depreciation computed under another statutory regime. Applying the Income-tax Act depreciation rates, the company had no accumulated profits at the relevant time and only unabsorbed depreciation remained to be carried forward, so the loan could not be treated as deemed dividend. en-us Wed, 18 Mar 1970 00:00:00 +0530 Fri, 27 Mar 2009 11:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8019 A loan advanced by a company to a shareholder is not taxable as deemed dividend under section 2(6A)(e) unless the company has accumulated profits computed under the Income-tax Act. Accumulated profits must be determined by profits recognised for tax purposes, after deducting depreciation at the rates allowable under that Act, and cannot be fixed merely by balance-sheet figures or depreciation computed under another statutory regime. Applying the Income-tax Act depreciation rates, the company had no accumulated profits at the relevant time and only unabsorbed depreciation remained to be carried forward, so the loan could not be treated as deemed dividend. Case-Laws Income Tax Wed, 18 Mar 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8019