Paid an amount of ₹ 2 Lakh as Security Deposit to M/s DHF Private Limited, 100% subsidiary of M/s DFC Limited in terms of agreement for leasing out of office premises. M/s DHF Private Limited has also provided inter corp

Any advance received as a deposit by the company in connection out of property cannot be treated as deemed dividend. Refer to ACIT vs. Madras Madura Properties Pvt Limited and Bombay Oil Industries Ltd. 28 SOT 383. Hence security deposit of ₹ 2 Lakh is not taxable as deemed dividend.