1977 (4) TMI 3 - SC - Income Tax

Section 2(6A)(e) of 1922 Act, would be attracted at the time of advance of loan being made to the shareholder except for the specific provisions in s. 12(1B) - legislature has deliberately not made the subsistence of the loan on the date of the previous year a prerequisite for raising the statutory provisions - Therefore, even though the loan was not outstanding as of the year end, it should be treated as deemed dividend - Assessee's appeal is dismissed