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2012 (10) TMI 604 - HC - Income TaxDeemed dividend income under section 2(22)(e) - partners had collectively more than 10% voting power in sister concern - Held that:- As decided in CIT v. Universal Medicare (P) Limited [ 2010 (3) TMI 323 - BOMBAY HIGH COURT] the shareholders of different holdings cannot be clubbed to decide the issue of fulfilment of the conditions laid down in Section 2(22)(e). It was further observed that only the shareholder can be assessed on account of deemed dividend and not the company under the aforesaid provision. As in present case Shri Balbir Kumar, partner possessed 6.64% of the shareholding whereas Shri Harsh Kumar, partner had 6% only. The share of the assessee i.e. M/s Octave Apparels was 1.07% and in such circumstances, the provisions of Section 2(22)(e) could not be resorted to. The Tribunal was, thus, right in concluding in favour of the assessee.
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