https://www.taxtmi.com/caselaws?id=17164 A shareholder advance is not treated as deemed dividend where the company is, on the facts found, carrying on money-lending as a substantial part of its business and the loan is made in the ordinary course of that business. The Madras HC noted that the company had discontinued its manufacturing activity and was engaged only in money-lending during the relevant year. As the advance was made in that business and the statutory exception to section 2(6A)(e) of the Indian Income-tax Act, 1922 applied, the amount fell outside the deeming provision and was not assessable as deemed dividend. en-us Wed, 10 Jan 1996 00:00:00 +0530 Wed, 21 Sep 2016 17:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17164 A shareholder advance is not treated as deemed dividend where the company is, on the facts found, carrying on money-lending as a substantial part of its business and the loan is made in the ordinary course of that business. The Madras HC noted that the company had discontinued its manufacturing activity and was engaged only in money-lending during the relevant year. As the advance was made in that business and the statutory exception to section 2(6A)(e) of the Indian Income-tax Act, 1922 applied, the amount fell outside the deeming provision and was not assessable as deemed dividend. Case-Laws Income Tax Wed, 10 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17164