Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 459 - BOMBAY HIGH COURTDeemed dividend u/s 2(22)(e) - payments ‘made to any concern in which the shareholder is a member’ - common shareholder having a substantial interest in the assessee company as well as in the creditor companies - excess of Reserve and Surplus over loan - Held that:- admittedly the assessee company is not a beneficial owner of any shares in the creditor companies which have advanced the loans. - For the second limb of Section 2(22)(e) of the I.T. Act, 1961 to come into play, the condition that has to be fulfilled is that the creditor companies ought to have given monies by way of an advance or loan to a concern in which the assessee company is a member or partner and in which it has a substantial interest. In other words, what the second limb of section 2(22)(e) contemplates is that, the creditor companies give a loan not directly to its shareholder but to any concern in which such shareholder has a substantial interest. It is then that the same would attract the second limb of Section 2(22)(e) of the I.T. Act, 1961. That is certainly not the factual situation before us. Decided against the revenue.
|