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2022 (10) TMI 103 - AT - Income TaxDeemed dividend Addition u/s 2(22)(e) - loan advances received as assessee is a common shareholders in both the companies holding more than 10% of the shares - HELD THAT:- As during the course of assessment proceedings, the respondent-assessee had not disputed that he is common shareholder in both the companies, however, contended that the provisions of section 2(22)(e) have no application, inasmuch as, the loan was advanced by M/s. Kumar Urban Developers Ltd. to M/s. Shatrunjay Construction and Developers Pvt. Ltd. in the ordinary course of its business. However, during the course of proceedings before the CIT(A), the respondent-assessee took a plea that he was not a shareholder in M/s. Shatrunjay Construction and Developers Pvt. Ltd. at the time of granting of loan by M/s. Kumar Urban Developers Ltd. to M/s. Shatrunjay Construction and Developers Pvt. Ltd. and this contention was proved by filing the shareholding pattern of the said company. Even on remand to the Assessing Officer by ld. CIT(A), the Assessing Officer also concurred with the submission of the respondent-assessee that he is not a shareholder in M/s. Shatrunjay Construction and Developers Pvt. Ltd. at the relevant point of time. CIT(A) accordingly concluded that the provisions of section 2(22)(e) have no application to the facts of the present case. This fact has not been controverted by the ld. Sr. DR. Since the order of the ld. CIT(A) is based on proper appreciation of facts and law, we do not find any infirmity in the order of the ld. CIT(A). Accordingly, the grounds of appeal raised by the Revenue stand dismissed.
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