https://www.taxtmi.com/caselaws?id=38527 A loan or advance by a closely held company to a shareholder is treated as deemed dividend under section 2(6A)(e) read with section 12(1B) of the Indian Income-tax Act, 1922, up to the limit of the company's accumulated profits. The statutory scheme does not require the deemed dividend to be restricted to the shareholder's proportionate interest in those profits. If the advance is less than the accumulated profits, the whole payment is taxed as dividend; if it exceeds them, the charge is confined to the accumulated profits available. en-us Tue, 24 May 1977 00:00:00 +0530 Wed, 07 Apr 2010 10:51:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38527 A loan or advance by a closely held company to a shareholder is treated as deemed dividend under section 2(6A)(e) read with section 12(1B) of the Indian Income-tax Act, 1922, up to the limit of the company's accumulated profits. The statutory scheme does not require the deemed dividend to be restricted to the shareholder's proportionate interest in those profits. If the advance is less than the accumulated profits, the whole payment is taxed as dividend; if it exceeds them, the charge is confined to the accumulated profits available. Case-Laws Income Tax Tue, 24 May 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38527