https://www.taxtmi.com/caselaws?id=38519 Income-tax refund received during the accounting year did not constitute accumulated profits for the purpose of section 2(6A)(e) of the Indian Income-tax Act, 1922. The provision applies only where a company with accumulated profits makes a loan or advance to a shareholder, and accumulated profits are those brought forward up to the end of the previous accounting year; current-year receipts do not automatically qualify. As the company had no accumulated profits on the relevant date and the refund was not shown to be current profits of that year, the statutory condition for treating the advance as deemed dividend was not met. The amount was therefore not includible in the assessee's income as deemed dividend. en-us Thu, 12 Aug 1976 00:00:00 +0530 Wed, 07 Apr 2010 10:29:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38519 Income-tax refund received during the accounting year did not constitute accumulated profits for the purpose of section 2(6A)(e) of the Indian Income-tax Act, 1922. The provision applies only where a company with accumulated profits makes a loan or advance to a shareholder, and accumulated profits are those brought forward up to the end of the previous accounting year; current-year receipts do not automatically qualify. As the company had no accumulated profits on the relevant date and the refund was not shown to be current profits of that year, the statutory condition for treating the advance as deemed dividend was not met. The amount was therefore not includible in the assessee's income as deemed dividend. Case-Laws Income Tax Thu, 12 Aug 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38519