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2015 (10) TMI 1608 - AT - Income TaxDeemed dividend addition under section 2(22)(e) - Held that:- Undisputedly, the appellant is not a shareholder of M/s. Country-wide Promoters P. Ltd. It is trite law that the provisions of section 2(22)(e) have no application to non-registered shareholders. The hon'ble apex court in the case of CIT v. C. P. Sarathy Mudaliar [1971 (10) TMI 8 - SUPREME Court] while construing the provisions of section 2(6A)(e) of the Act, 1922 which are in pari materia with the provisions of section 2(22)(e) of the Income-tax Act, 1961, held that the provisions governing the deemed dividend can be made applicable only in the hands of the registered shareholders. Since, admittedly, in the present case, the appellant is not a shareholder of M/s. Countrywide Promoters P. Ltd. the amount of ₹ 1,73,262 cannot be taxed in the hands of the appellant-company. - Decided in favour of assessee.
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