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2014 (5) TMI 429 - AT - Income TaxMaintainability of the Appeal – Validity of re-opening of assessment u/s 148 of the Act - Loan received – Deemed dividend u/s 2(22)(e) of the Act – Held that:- Relying upon CIT vs. Bhaumik Colour P. Ltd. [2008 (11) TMI 273 - ITAT BOMBAY-E ] – it cannot be said that the AO could not entertain or hold a honest belief that the assessee was liable to be assessed in respect of deemed dividend u/s 2(22)(e) r/w s. 56 of the Act - income to that extent had escaped assessment - the deemed dividend could only be assessed in the hands of the share-holder, i.e., for whose benefit the loan or advance is given or considered as given - a sum advanced could be deemed as dividend u/s 2(22)(e) only in case of a person who is a shareholder of the payer company, both registered as well as beneficial - the amount cannot be considered as the income of the debtor or the recipient concern or company -there could be no escapement from assessment qua the same - the view entertained by the AO is without any basis in law - there was no valid assumption of jurisdiction in the first place - the reopening of the assessment on that ground per section 148 is bad in law – Decided against Revenue.
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