TMI Blog2010 (11) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... essees against the order of the learned CIT(A)-I, Indore, dated 1.10.2009. 2. The only ground pressed by the ld. Counsel for the assessee is that the ld. CIT(A) is not justified in affirming the addition on account of deemed dividend on the basis of accumulated profit. 3. We have considered the rival submission and perused the martial available on the file. The undisputed fact in the instant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 1.4.2005 and 31.3.2008 respectively. Scanning of the ledger of the assessee as appearing in the books of accounts of M/s. Resource Combine Solutions Pvt. Ltd. duly confirmed by it had revealed that the assessee had received and repaid the loan. The ledger of the assessee as appearing in the books of accounts of M/s. Resource Combine Solutions Pvt. Ltd. is reproduced as under: The is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n shareholder referred to in sec. 2(22)(e) refers to both the registered shareholders and beneficiary shareholder, meaning thereby, for bringing such loan into the deeming provisions of sec. 2(22)(e) of the Act, the assessee must be both registered as well as beneficial shareholder of the lender company. If the assessee is merely a registered shareholder but not a beneficial shareholder or merel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axability of deemed dividend in the hands of the assessee who is not a shareholder. Therefore, in view of the facts of the present appeal and the aforesaid decision of Special Bench of the Tribunal wherein the decision from Hon ble Bombay High Court has been duly considered, this ground of the assessee is allowed. Finally the appeal of the assessee is partly allowed. Order pronounced in open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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