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2016 (12) TMI 411 - HC - Income TaxApplication of provisions of section 2(22)(e) - ITAT deleted the addition on deemed dividend - Held that:- Question (i) as framed by the Revenue stands concluded against the Revenue and in favour of the respondent assessee by the decision of this Court in Commissioner of Income Tax Vs. Universal Medicare Pvt. Ltd [2010 (3) TMI 323 - BOMBAY HIGH COURT and Commissioner of Income Tax Vs. Impact Containers (P) Ltd. (2014 (9) TMI 88 - BOMBAY HIGH COURT) wherein held no loan or advance was granted to the assessee, since the amount in question had actually been defalcated and was not reflected in the book of account of the assessee. Even assuming that it was a dividend, it would have to be taxed not in the hand of the assessee but in the hands of the shareholder. - Decided against revenue In view of the fact that the share holding of Mr. Sunil Mantri in respondent assessee is of no consequence in view of the decision of this Court in Impact Containers Pvt. Ltd. (supra). This is so as it is undisputed that respondent assessee is not a registered shareholder in the lending company viz. M/s. Sunil Mantri Reality Ltd.
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