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2018 (10) TMI 244 - DELHI HIGH COURTDeemed dividend addition u/s 2(22)(e) - loan transaction from one subsidiary to another subsidiary company with common parent company - deemed shareholder - Held that:- It is an accepted and admitted position that M/s Cargill Global Trading India Private Limited is one step down subsidiary of M/s Cargill Inc USA. The respondent-assessee is a two step down subsidiary of M/s Cargill Ink USA. The step up subsidiary(ies) of M/s Cargill Global Trading India Private Limited and M/s Cargill India Private Limited are different and not common. It is not possible to accept the contention that the respondent-assessee should be treated as a shareholder or beneficial owner of the shares in M/s Cargill Global Trading India Private Limited. We do not think that the loan given by M/s Cargill Global Trading India Private Limited can be treated as “deemed dividend” paid to the respondent-assessee. - Decided in favour of assessee.
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