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2014 (8) TMI 388 - HC - Income TaxDeemed dividend u/s 2(22)(e) – Purpose of enactment of provisions for deemed dividend – Taxability of deemed dividend - Whether deemed dividend to be taxed in the hands of the shareholder only and not in the hands of the concern - Held that:- Following the decision in THE CHIEF COMMISSIONER OF INCOME TAX-III & ANR. VS. M/S. SARVA EQUITY PVT. LTD. [2014 (4) TMI 788 - KARNATAKA HIGH COURT] - a beneficial owner of shares whose name does not appear in the Register of shareholders of the Company cannot be stated to be a shareholder - He may be beneficially entitled to the share but he is certainly not a shareholder - it is only the person whose name is entered in the Register of the shareholders of the Company as the holder of the shares who can be said to be a shareholder qua Company and not the person beneficially entitled to the shares - it is only where a loan is advanced by the Company to the registered shareholder and the other conditions set out in Section 2(22)(e) of the Act are satisfied, that amount of loan would be liable to be regarded as deemed dividend – Decided against Revenue. Amendment to section 80IB prospective in nature – Form No. 10CCB not filed – Held that:- The provision came on the statute book by Finance Act 2004, with effect from 1/4/2005 - The plan which is sanctioned is of 16/3/2004 ie., prior to the provision coming into force – the provision is prospective in nature and it has no application to house products which was approved by the local authority prior to 1/4/2005 - the benefit u/s 80 IB cannot be denied to the assessee on the ground that he does not comply with the terms of Sec.80 IB(10) - The Tribunal has recorded a finding that the building was completed within the stipulated period and the certificate issued by the Panchayat after the building is completed, the assessee is entitled to the benefit – Decided against Revenue.
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