TMI Blog2018 (2) TMI 1472X X X X Extracts X X X X X X X X Extracts X X X X ..... ber or partner having substantial interest. Admittedly, in the present case the assessee-company was not a shareholder of the lender company. But, in this case both the lender and the borrower have common shareholders. See CIT v. Ankitech (P) Ltd [2008 (6) TMI 611 - ITAT DELHI] - Decided in favour of assessee. - INCOME TAX APPEAL No. 752 of 2012, INCOME TAX APPEAL No. - 304 of 2015 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction between the assessee company and M/s Treadstone Ltd as Commercial/Trade transaction and not loan and advances, particularly when such a transaction is defined as deemed dividend u/s 2(22) (e). The Tribunal has taken a view rightly that a deemed dividend could only have been assessed in the hands of a person who is shareholder of the lender company and not in the hands of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd . Thus, by a deeming provision, it is the definition of dividend which is enlarged. Legal fiction does not extend to shareholder . When we keep in mind this aspect, the conclusion would be obvious, viz., loan or advance given under the conditions specified under Section 2(22) (e) of the Act would also be treated as dividend. The fiction has to stop here and is not to be extended further for bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of the learned counsels for the Revenue would stand answered, once we look into the matter from this perspective. .............. 28. Insofar as reliance upon Circular No. 495 dated 22.09.1997 issued by Central Board of Direct Taxes is concerned, we are inclined to agree with the observations of the Mumbai Bench decision in Bhaumik Colour (P) Ltd. (supra) that such observations are no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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