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2013 (7) TMI 316 - AT - Income TaxDeemed dividend u/s 2(22)(e) - Held that:- It is in undisputed fact that assessee is not a shareholder in M/s. Agrawal Galvanising Pvt. Ltd. which has advanced loan of Rs. 1,88,83,665 to the assessee. To bring this loan into the ambit of deemed dividend under section 2(22)(e), it has to be established first that the same was given to a shareholder out of accumulated profits. If the assessee company which has received the loan is not a shareholder then fiction cannot be extended on the ground that the directors were common and having more than 10% of voting rights, clause (e) of section 2(22) must be given strict interpretation. See ACIT Versus Bhaumik Colour (P) Limited [2008 (11) TMI 273 - ITAT BOMBAY-E] & Commissioner of Income-tax versus Universal Medicare Private Limited [2010 (3) TMI 323 - BOMBAY HIGH COURT]. Against revenue.
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