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2019 (1) TMI 589 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - assessee obtained loan of ₹ 10 Lacs from one of its sister concern - both these entities had one common shareholder namely Mr. Dierdre Dcunha who held more than 20% shareholding in both these entities - Held that:- No dispute that there are common shareholders both in the assessee-company and sister concern - Therefore, quite correctly, though, the advance received by the assessee company may have been for the benefit of the aforementioned registered shareholders, it could only be assessed in the hands of those registered shareholders and not in the hands of the assessee-company. Section 2(22)(e) does not extend the meaning of the term ‘shareholders’ and that the loan so granted could not be taxed as dividend income in the hands of the recipient company who was not the shareholder of the lender company. On a plain reading of the provisions of Section 2 (22)(e) of the Act, no other conclusion can be reached to make the addition - decided in favour of assessee
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