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2017 (2) TMI 511 - KARNATAKA HIGH COURTDeemed dividend u/s 2(22)(e) of the Act – Advance/loan paid - Held that:- The matter is already covered by the decision of this Court in Chief Commissioner of Income-tax -III and ACIT Versus Sarva Equity (P.) Ltd. [2014 (4) TMI 788 - KARNATAKA HIGH COURT] if the intention of the Legislature was to tax such loan or advance as deemed dividend at the hands of deeming shareholder, then the legislature would have inserted deeming provision in respect of shareholder as well. The legislature has not done so - It is only the person whose name is entered in the Register of the shareholders of the Company as the holder of the shares who can be said to be a shareholder qua Company and not the person beneficially entitled to the shares - it is only where a loan is advanced by the Company to the registered shareholder and the other conditions set out in Section 2(22)(e) of the Act are satisfied, that amount of loan would be liable to be regarded as deemed dividend – Decided against Revenue.
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