Mr John Geroge Nechupadom had more than 10 per cent share holding in Plant Lipids (P) Ltd . Plant Lipids (P) Ltd advanced the amount to Aromatic Ingrediants (P) Ltd. AO made addition as deemed dividend. Which was deleted by the Tribunal. On appeal by the revenue, dismissing the appeal the Court held that assessee is not the share holder hence deletion of addition by the Tribunal is held to be justified. (AY. 2007-08)
CIT v. Net work Systems & Technologies (P) Ltd. (2018) 172 DTR 445 (Ker.) (HC)
S. 2(22)(e) : Deemed dividend-Registered and beneficial share holder – Assessee is not share holder-Addition cannot be made as deemed dividend.