https://www.taxtmi.com/caselaws?id=472504 Section 2(22)(e) treats gratuitous loans or advances to qualifying shareholders, made merely because of their shareholding, as deemed dividend. An advance given where the shareholder provides collateral security and a personal guarantee for the company's borrowings, thereby conferring a commercial benefit, falls outside that provision. A short-term advance repaid during the year and used to acquire shares in a group concern to facilitate business expansion is commercial rather than gratuitous and is not taxable as deemed dividend. en-us Tue, 22 Apr 2025 00:00:00 +0530 Wed, 14 Oct 2026 13:28:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472504 Section 2(22)(e) treats gratuitous loans or advances to qualifying shareholders, made merely because of their shareholding, as deemed dividend. An advance given where the shareholder provides collateral security and a personal guarantee for the company's borrowings, thereby conferring a commercial benefit, falls outside that provision. A short-term advance repaid during the year and used to acquire shares in a group concern to facilitate business expansion is commercial rather than gratuitous and is not taxable as deemed dividend. Case-Laws Income Tax Tue, 22 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472504