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2017 (8) TMI 408 - AT - Income TaxAddition towards deemed dividend u/s 2(22)(e) - payment made to assessee company - deemed shareholders - the shareholders of the assessee company are having substantial share holding exceeding 20% in M/s. Maha Maruthi Logistics Private Limited - Held that:- From the plain reading of section 2(22)(e) of the Act, it is evident that the deemed dividend is taxable in the hands of the registered share holder but not in the hands of the deemed shareholders. See G. Indira Krishna Reddy and G.V. Krishna Reddy [2017 (5) TMI 1365 - ITAT HYDERABAD] In the instant case, the assessee is not the shareholder in the payer company M/s. Maha Maruti Logistics Pvt. Limited. Therefore, the decision of Hon’ble ITAT Hyderabad bench and the special bench in the case of Bhowmick Colour Lab Pvt. Ltd. 120 (2008 (11) TMI 273 - ITAT BOMBAY-E ) and the decision in case of CIT Vs. Ankitech P. Ltd. (2011 (5) TMI 325 - DELHI HIGH COURT) are squarely applicable in the assessee’s case. Therefore, we do not find any infirmity in the order of Ld. CIT(A) and the same is upheld. - Decided against revenue
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