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2016 (6) TMI 552 - AT - Income TaxDeduction u/s 80IA - whether Container Freight Station can be construed as Inland Port for the purpose of allowing deduction u/s 80IA of the Act? - Held that:- This issue was considered by the Delhi High Court in M/s Container Corporation of India Ltd (2012 (5) TMI 260 - DELHI HIGH COURT ) after referring to the circular issued by the CBDT, the High Court found that Container Freight Station was notified by the Customs Authorities and also customs clearance took place in Container Freight Station. The Office Memorandum issued by the Ministry of Commerce clarified that Container Freight Stations are Inland Ports. Accordingly, the Delhi High Court found that the Container Freight Stations are ‘infrastructure facility’ within the meaning of ‘Inland Ports’. The CIT(A), by following the judgment of the Delhi High Court in M/s Container Corporation of India Ltd(supra), directed the Assessing Officer to allow deduction u/s 80IA(4) of the Act. Since the Delhi High Court considered similar issue and found that Container Freight Station is an ‘infrastructure facility’ and the same would fall within the definition of ‘Inland Port’, this Tribunal do not find any reason to interfere with the order of the lower authority - Decided in favour of assessee Deemed dividend addition u/s 2(22) - Held that:- In case the advance/loan was advanced for the benefit of the registered shareholder or any other person, still the same has to be assessed as deemed dividend in the name of the registered shareholder for whose benefit the advance/loan was given. In the case before us, the assessee is not a shareholder in M/s Indev Logistics P. Ltd. The common shareholders are Shri Xavier Britto and Smt. Vimalarani Britto. Shri Xavier Britto is holding 50% of the shares in the assesseecompany and Smt. Vimalarani Britto is holding 50% of the shares in the assessee-company. In the case of M/s Indev Logistics P. Ltd. Shri Xavier Britto is holding 60% of the shares whereas Smt. Vimalarani Britto is holding 40% of the shares, therefore, as rightly submitted by the ld. DR there are common shareholders in both the companies. The advance received by the assessee-company may be for the benefit of the common shareholders who are holding the shares in the assessee-company. However, for the purpose of assessing the deemed dividend, it has to be assessed only in the hands of the registered shareholder for whose benefit the money was advanced. In the case before us, in fact, the money was advanced for the benefit of the shareholders, Shri Xavier Britto and Smt. Vimalarani Britto, therefore, the assessment, if any, has to be made only in the hands of Shri Xavier Britto and Smt. Vimalarani Britto and not definitely in the hands of the present assessee. - Decided in favour of assessee
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