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2015 (7) TMI 1068 - AT - Income TaxDeemed dividend addition u/s 2(22) - Held that:- From the explanation 3(b) to section 2(22)(e),it is very clear that a person shall be deemed to have a substantial interest in a concern, other than a company, if he is, at any time during the previous year, beneficially entitled to not less than twenty per cent of the income of such concern. This explanation clearly mentions about any time during the previous year. It is not as stated by the ld. Counsel for the assessee between 01.04.2010 to 11.10.2010 and this has to be understood as 31.03.2011 because the assessment year involved is 2011-12 and for the purpose of section 2(22)(e), the share holding pattern has to be seen as on 31.03.2011. The assessee is having more than 25% as on 31.03.2011. Therefore, section 2(22)(e) squarely applies to assessee’s case. The transfer of shares has to be taken on the date of transfer forms and not on the date of company registered the shares in the names of done. Shares having been gifted to the assessee and found to be genuine and the deemed dividend could not assessed in her hands. The proviso to Explanation 3(b) to section 2(22)(e) was inserted by the Finance Act, 1987. The facts of the case in hand are also different. Keeping in view of the above, we find that section 2(22)(e) of the Act squarely applies to assessee’s case and accordingly, the appeal filed by the assessee is dismissed. - Decided against assessee.
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