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2015 (6) TMI 873 - ITAT MUMBAIDeemed dividend - Common shareholders having substantial interest - Held that:- In the case of Hon’ble Bombay High Court in the case of CIT Vs. Impact Containers Pvt. Ltd. and others [2014 (9) TMI 88 - BOMBAY HIGH COURT], it was held that since assessee company is not a share holder of the lender company, the addition in the hands of the assessee is not called for and therefore, is liable to be deleted. Accordingly we delete this addition in the hands of the assessee. However, we have gone through the decision of Hon’ble Delhi High Court in the case of CIT Vs. Ankitech Pvt. Ltd. [2011 (5) TMI 325 - DELHI HIGH COURT ] , as this decision of Hon’ble Delhi High Court has been concurred with by the Hon’ble Bombay High Court. In the case of CIT Vs. Ankitech Pvt. Ltd. [2011 (5) TMI 325 - DELHI HIGH COURT ] , their Lordships have observed that since the conditions stipulated in section 2(22)(e) of the Act treating the loan and advances as deemed dividend are establish in such cases, therefore it would always be open to the revenue to take corrective measure by treating this dividend income at the hands of the share holders and tax them accordingly. As otherwise it would amount to escapement of income at the hands of those shareholders. - Decided in favour of assessee with observations in above para.
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