Issues in Corporate Taxation. - jb nagar cpe study circle of wirc of icai

Facts & background in reference to Provisions
• Clause(i) of sec 2(22) was satisfied as AMPL was also engaged in the
business of lending money &
• The business of assessee was complimentary with the business to the
business of AMPL & the money was lent in the usual course of business.
• As regards the second condition, on facts, as about 40% of the total
assets of AMPL were deployed by way of loans and advances, and its
interest income was substantial compared to the total income, lending of
money was a “substantial part of its business” and the money given by it
by way of loan / advance was excluded from the definition of “dividend”
under s. 2(22)(ii).
August, 2011
CA Sanjeev Lalan, Singrodia Goyal & Co.
Presentation at JB Nagar CPE Study Circle
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