Granted an interest-bearing loan of ₹ 20 Lakh to M/s EXL Private Limited in which Mrs. Riya, wife of Nitin is the equity shareholder holding 25% equity shares of M/s EXL Private Limited.

As per the provisions of section 2(22)(e) of the Act, Since Nitin is not a member having substantially interested of atleast 20% share of M/s EXL Pvt. Limited and further the loan was provided in the normal course of business, therefore, it cannot be treated as deemed dividend U/s 2(22)(e) of the Act.