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2014 (9) TMI 172 - HC - Income TaxApplicability of deemed dividend u/s 2(22)(e) – Expenses on construction/renovation of the owned premises incurred – Held that:- The AO was of the view that the amount of ₹ 2.51 crores was paid on behalf of the assessee - analysis of section 2(22)(e) would reveal that in order attract the provisions of sub-section (22) the payment made by the Company must be by way of advance or loan to the shareholder who is entitled to the shares which do not carry a fixed rate of dividend with or without a right to participate or a payment to him for his individual benefit - no money has been paid by way of advance or loan nor was any payment made for his individual benefit - it is deemed that the Company did spent ₹ 2.51 crores towards repair and renovation on the premises owned by the Respondent - the Company had taken rent on the premises - the asset of the Respondent may have enhanced in value by virtue of repairs and renovation in respect of which it cannot be brought within definition of the advance or loan to the Respondent - Nor can it be treated as payment by the Company on behalf of the Respondent share holder or for the individual benefit of such shareholder – the order of the Tribunal is upheld – Decided against Revenue.
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