TMI Blog2013 (3) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Court in CIT v. Hotel Hilltop [2009] 313 ITR 116 decided on 17-3-2008. 2. It has been alleged by the revenue that the assessee derives income from trading of shares and during the course of assessment proceedings it was revealed that the assessee has received a sum of ₹ 23.00 lacs from M/s. Japanwala Jewellers (P.) Ltd., Jaipur on the ground that it was towards share application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. However, the appellate authority taking note of the judgment of this Court in Hotel Hilltop case (supra) observed that deemed income cannot be taxed in the hands of non-shareholders namely the concern. As the concern can never receive dividend from the company, as dividend is paid only to the shareholders, benefit of set off as per section 2 (22)(e)(iii) cannot be allowed to the concern and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the hands of the assessee company. 3. Against the order of Commissioner of Appeals, the revenue preferred appeal before the ITAT and placing reliance on the judgment referred to supra the Tribunal was also of the view that liability of tax as deemed dividend would be attracted in the hands of the individuals being shareholders and not in the hands of the firm and this was not the case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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