The assesseee is not a registered share holder of APL who was lender company.Assessee received certain sum as loans/advances from its group company (APL). Assessing Officer treated amount of loans/advances received by assessee from APL as deemed dividend under section 2(22)(e) on ground that there was a common shareholding by KSWPL having substantial interest in both APL and assessee.  CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that  KSWPL was in a position to control affairs of both APL and assessee. Benefit of transaction between APL and assessee accrued to KSWPL who was in a controlling position having more than 20 per cent of shareholding in both of them-Assessee and APL were in no way in a position to compel KSWPL in any way for exercising its voting rights in a particular manner.  Thus, beneficial shareholder was KSWPL under whose controlling interest and influence, APL had given loan/advance to assessee and, accordingly, deeming provisions of section 2(22)(e) under second limb were attracted on KSWPL. Further, taking into consideration provisions contained in section 5(1)(b), income accrues or arises or is deemed to accrue or arise in hands of KSWPL and not in hands of assessee and same was not taxable in hands of assessee. Addition is deleted. (AY. 2013-14, 2014-15)