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2021 (4) TMI 95 - AT - Income TaxDeemed dividend u/s 2(22)(e) - Whether the assessee company, which is not a registered shareholder of the company providing loan to it, may be brought under the scanner of deemed dividend? - HELD THAT:- The provisions of section 2(22)(e) of the Act can only be invoked in case of a shareholder who is holding substantial interest. The provision of section 2(22)(e) of the Act nowhere talks about taxing an entity/company which is not a shareholder holder in lender company but to shareholder of such company holding substantial share in lender company - Coming to the case on hand, admittedly, the assessee company in not holding any shares or rights of M/s. Planet Automotive Pvt Ltd. Thus considering the above discussion and judgment of Hon’ble court in case of Mahavir Inductomelt [2017 (1) TMI 1159 - GUJARAT HIGH COURT] AO was not justified in invoking the provisions of section 2(22)(e) of the Act in given facts and circumstances. Thus we hold that the learned CIT(A) rightly deleted the addition made by the AO. Hence, the ground of appeal of the Revenue is dismissed.
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