Ashwinikumar Ramkumar vs ACIT Central Circle-1(2)

Whether a net debit balance in a shareholder's current account with a private company constitutes deemed dividend under section 2(22)(e) of the Income Tax Act 1961, even if temporary and subsequently repaid --- Held Yes, but the quantum must be recomputed considering accrued interest on credit balances. Whether the addition should be based on net debit balance after accounting for daily interest on credit balances --- Held Yes, matter remanded for recomputation.