Deemed dividend

When the shareholding of the assessee in the company who has advanced the payments to the assessee is less than 10%, provisions of s 2(22)(e) is not attracted — as held by AhdTrib in ACIT v Medical Technologies Pvt Ltd — In favour of: The assessee.

Disallowance under s 43B — When the service tax has neither been claimed as a deduction nor forms part of the receipt of the relevant period, no disallowance can be made under s 43B.

Bad debt — Deduction under s 36(1)(vii) can be allowed only when the assessee fulfils the requirement of s 36(2).

In favour of: The revenue.

Decided on: 20 October 2011.