TMI Blog2015 (10) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or loan to a shareholder or to the benefit of the shareholder, it has to be treated as deemed dividend under Section 2(22)(e) of the Act. Dividend has to be assessed only in the hands of the shareholders. If the payment was made on behalf of the shareholder or benefit of the shareholder, the assessment has to be made only in the hands of the shareholder on whose benefit the advance was made as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent : Sh. B.S. Purushotham, CA ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-VI, Chennai, dated 30.08.2013 and pertains to assessment year 2006-07. 2. Sh. Joe Sebastian, the Ld. Departmental Representative, submitted that the only issue arises for consideration is with regard to addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee-company under the pretext of receiving advance money from sister concern for purchasing of iron ore, received the advance in violation of Section 2(22)(e) of the Act. According to the Ld. D.R., even though the assessee claims that the transaction between the assessee and its sister concern was commercial in nature, no such commercial requirement was established. Therefore, the recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . representative, the provisions of Section 2(22)(e) of the Act will not be applicable. 4. We have considered the rival submissions on either side and perused the relevant material on record. It is not in dispute that the assessee-company is not a shareholder in M/s Trimex Industries Private Limited. Section 2(22)(e) of the Act clearly says that any payment made by a company by way of advance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee-company is not a shareholder in M/s Trimex Industries Private Limited, this Tribunal is of the considered opinion that the provisions of Section 2(22)(e) of the Act is not applicable. Therefore, we do not find any reason to interfere with the order of the lower authority. Accordingly, the same is confirmed. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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