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2015 (8) TMI 1078 - AT - Income TaxAddition on account of deemed dividend u/s 2(22)(e) - assessment framed u/s. 143(3) r.w.s. 153A - CIT(A) deleted addition - Held that:- It is an undisputed fact that Smt. Maya Dokania holds 18.33% of share holding in Newton Construction Pvt. Ltd. and 42.12% share holding in Assessee company. Assessee is not a share holder in Newton Construction Pvt. Ltd. from whom it has received amount. We find that the Hon'ble Special Bench in the case of ACIT vs. Bhaumik Color Pvt. Ltd. (2008 (11) TMI 273 - ITAT BOMBAY-E) has held that deemed dividend can be assessed only in the hands of a person who is a shareholder of the lender company and not in the hands of borrowing concern in which such share holder is a member or a partner having substantial interest. Further in the case of CIT vs. Ankitech Pvt. Ltd. (2011 (5) TMI 325 - DELHI HIGH COURT) held that a concern which is given loan or advance by a company cannot be treated as shareholder/member of the company who has advanced loan simply because a shareholder of the lender company holding power of 10% or more therein has substantial interest in such concern as such loan or advance cannot be treated as deemed dividend u/s. 2(22)(e) of the Act. Considering the facts of the present case in the light of aforesaid decisions we are of the view that in the present case no addition on account of deemed dividend u/s. 2(22)(e) can be made. Further, before us, Revenue has not brought any contrary binding decision in its support nor could controvert the findings of ld. CIT(A). In view of the aforesaid facts, we find no reason to interfere with the order of ld. CIT(A). - Decided against revenue.
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