Deemed Dividend - Definition - Law Dictionary Home Dictionary Definition deemed-dividend

Definition :

Deemed dividend, it is only where a loan is advanced by a company to a registered shareholder out of its accumulated profits that it would be liable to be regarded as 'deemed dividend' under s. 2(6A)(e) of the Income-tax Act,1922 and a loan to a beneficial owner of the shares does not come within the mischief of this section, Rameshwal Lal Sanwarmal v. Commissioner of Income Tax, (1980) 2 SCC 371: AIR 1980 SC 372: (1980) 2 SCR 369.