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2018 (5) TMI 494 - AT - Income TaxDeemed dividend u/s 2(22)(e) - common shareholders - Held that:- The provisions of section 2(22)(e) of the Act would not be attracted in this case as the assessee company is not a shareholder in the company M/s Dayal Steels Pvt. Ltd who had given advance to the assessee company and we note that the assessee company’s name does not figure in the list of the shareholders. Hon’ble Delhi High Court in the case of CIT vs. A.R. Magnetics Pvt. Ltd. [2012 (4) TMI 624 - DELHI HIGH COURT] wherein held that the provisions relating to deemed dividend could not be invoked merely because the shareholders were common. In this case, it is seen that the sole ground for making the addition was that Mrs Rani Chawdhari was a common shareholder in both the companies. Therefore, we are unable to concur with the findings of the Ld. CIT (A) - Decided in favour of assessee.
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