Dismissing the appeal of the revenue , the Tribunal held that as per annual return filed before ROC , the assessee had already transferred its shareholding in borrower company to lender company before advancement of loan out of surplus funds hence addition as deemed dividend is held to be not valid . ( AY. 2013 -14)
ACIT v. Gurdeep Singh ( 2020) 183 ITD 317 / 117 taxmann.com 451 / 206 TTJ 872 / 80 ITR 14 (SN) ( Chd) (Trib)
S. 2(22)(e):Deemed dividend – Share holder – Transferred share holding on borrower company to lender company before advance of loan – Addition cannot be made as deemed dividend .