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2012 (12) TMI 569 - ITAT MUMBAIDeemed dividend u/s 2(22)(a) - perquisite u/s 2(24)(iv) - the benefit received by the assessee on account of occupancy rights of the premises - assessee is a shareholder of HPPL, which is a closely held company - held that:- assessee has received occupancy rights in the premises on perpetual basis and in lieu of which, assessee to hold shares in HPPL and also to give interest free refundable deposit of Rs. 18 lakhs towards proportionate land cost and development cost. Assessee is also entitled to transfer the occupancy rights by way of sale and transfer of block of assets and create third party rights subject to transferee deposit the required amount of interest free refundable security deposit and assessee thereafter to give possession to the transferee. CIT(A) is not justified to hold that it is perquisite benefit given by HPPL to its shareholder and not the transfer of occupancy rights to its shareholders. - provisions of section 2(24)(iv) of the Act does not apply to grant of occupancy rights by HPPL to the shareholder, i.e. assessee herein. AO has rightly held that the value of flats received are nothing but dividend given in the form of assets by HPPL.
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