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2019 (3) TMI 1106 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - assessee is neither a registered nor beneficial shareholder - advanced received from company - Two partners of the assessee firm Kishore S Golani and Ravi S. Golani were holding shares in the lender company i.e. M/s. Golani Construction India Pvt. Ltd. to the extent 15% & 16.67% - HELD THAT:- This is also undisputed that these shareholders have bought the shares in the lender company on their own absolute right and not on behalf of the firm. Now the issue before us whether the loan advanced by the M/s. Golani Construction India Pvt. Ltd. of ₹ 2.10 crores to the assessee firm could be considered as deemed dividend under section 2(22)(e) to the extent the lender company has accumulated reserved and surpluses. It is clear from the above that the firm M/s. Golani Brothers is neither a registered shareholder nor a beneficial shareholder in the M/s. Golani Construction India Pvt. Ltd. - we are of the opinion that the provisions of section 2(22)(e) of the Act are not applicable to the assessee and accordingly AO is directed to delete the addition
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