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2012 (9) TMI 321 - AT - Income TaxDeemed Dividend - partnership concern constituted of two partners C & H - said C was also Director of M/s V having 23% share holding in the said company - addition made on premise that holdings of the partners of the erstwhile partnership concern were more than 10% and hence provisions of S2(22)(e) were applicable - Held that:- Where the conditions laid down in S2(22) with regard to minimum shareholding by the shareholders in the assessee company were not fulfilled, the shareholding of various different persons could not be clubbed to decide the issue of fulfillment of condition laid down in section 2(22)(e). Undoubtedly the assessee had business relations with M/s V and over and above the sales amount, the said company had given cheques to the assessee. The said transactions though were in the nature of advances or loans, but no shareholding was held by the assessee partnership concern in the Indian company and in the absence of the same, the provisions of section 2(22)(e) were not attracted, which comes into operation only when there is shareholding of more than 10% of voting power and there is interchange of funds for non-business purposes - Decided in favor of assessee.
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