Business Advance Granted To Shareholder Not Utilised For Company Work Will Be Treated As Deemed Dividend Under Income Tax Act: Bombay HC

The Bombay High Court has given a significant ruling on "deemed dividend" under the Income Tax Act. The court's decision clarifies a key aspect of tax law. The ruling reinforces the principle that a company that is not a public company cannot be held responsible for the tax liability of its shareholders. The court's decision is a crucial reminder to all companies that they must be diligent in their dealings.