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2019 (8) TMI 1211 - HC - Income TaxDeemed dividend u/s 2(22)(e) - Whether Assessee should be held to be a ‘beneficial shareholder’ which can compel Verizon Singapore to vote in a particular way? - HELD THAT:- In the present case the Assessee is only a borrower from VCIPL of a sum of ₹ 16.73 crores (which the AO has restricted to ₹ 6.40 crores to the extent of available accumulated profits). ITAT further held that merely because Verizon Singapore holds more than 10% of the voting power in both VCIPL as well as the Assessee will not permit the Revenue to tax the aforementioned loan as a deemed dividend in the hands of the Assessee which is only the borrower. A proper reading of Section 2(22)(e) can only lead to one conclusion, which is also what the ITAT concluded, viz., that the said amount which is borrowed by the Assessee from VCIPL, in which Verizon Singapore holds more than 10% of voting power can if it all, be taxed only as deemed dividend in the hands of Verizon Singapore and not the Assessee. No substantial question of law arises
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