TMI Blog2014 (4) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... whose name is entered in the Register of the shareholders of the Company as the holder of the shares who can be said to be a shareholder qua Company and not the person beneficially entitled to the shares - it is only where a loan is advanced by the Company to the registered shareholder and the other conditions set out in Section 2(22)(e) of the Act are satisfied, that amount of loan would be liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent - assessee at the outset invited our attention to the judgment of this Court dated 8.1.2014 passed in ITA.No.322/12 (The Chief Commissioner of Income TaxIII and another Vs. M/s. Sarva Equity Pvt. Ltd) and connected appeals to submit that the substantial question of law involved in this appeal is squarely covered by the said judgment. Though in the memorandum of appeal, three substantial quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l question of law in favour of the assessee and against the revenue. 5. We Accordingly, dispose of this appeal in terms of judgment dated 8.1.2014 rendered in ITA.No.322/12 and connected appeals and answer the aforementioned substantial question of law in favour of the assessee and against the revenue. It would be appropriate to reproduce concluding paragraphs in judgment dated 8.1.2014 which r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th law. We are so observing, because otherwise it would amount to escapement of income at the hands of those shareholders. 6. As observed in paragraph 19, it would be open to the Revenue to take an corrective measure, if any, by treating the loan/advance amount as deemed dividend in the hands of shareholder by following the due procedure and in accordance with law. - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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