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2011 (11) TMI 318 - HC - Income TaxDeemed dividend- assessee is a private limited company- received loans from two Pvt Ltd companies- assessee-company did not hold any shares in the said companies.Held that:- Legal provision relates to dividend thereby, loan or advance given under the conditions specified under Section 2(22)(e) of the Act would be treated as dividend. By a deeming provision, it is the definition of dividend which is enlarged and is not to be extended further for broadening the concept of shareholder. Therefore, an assessee who is not a shareholder of the company, from which it received a loan or an advance cannot be treated as being covered by the definition of the word dividend as provided in Sec.2(22)(e) of the Act. Decided in favor of the assessee.
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