Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1252 - ITAT AHMEDABADDeemed dividend u/s 2(22)(e) - HELD THAT:- The requisite condition for invoking section 2(22)(e) of the Act is that the payment must be by way of loan or advance. “Loans/Advances carries different connotation than deposits in commercial parlance. And the ICD is ordinarily for an agreed period with an agreed interest. Hence there is a clear distinction between ICD vis a vis loans/advances and as the ICD does not fall within the purview of section 2(22)(e). In the present case, there is no case of deemed dividend. To further support of its contention for non-applicability of Section 2(22)(e), ld. A.R. cited a judgment of Jurisdictional High Court in the matter of CIT vs. Daisy Packers (P.) Ltd. [2015 (7) TMI 253 - GUJARAT HIGH COURT] wherein held where assessee had received a deposit from a company but it did own any share of said company, said deposit was an inter-corporate deposit and could not be treated as deemed dividend. More over assessee is neither a registered shareholder nor a beneficial shareholder of the lender company (JPIL). A.R. cited an order in the matter of CIT vs. Impact Containers (P.) Ltd. 367 ITR 346 [2014] (Bombay) wherein it is held that the deemed dividend u/s. 2(22)(e) can only be assessed in the hands of a person other than the shareholder who is a shareholder of the lender company and not in the hands of a person other than shareholder. CIT(A) has passed reasoned order and same does not require any kind of interference at our end. Appeal filed by the Revenue is dismissed.
|