Assessee is a private company and engaged in business of civil construction. During year under consideration had shown unsecured loan from  JP Iscon Ltd. There were common shareholders in assessee-company and  the said common shareholders were holding 50 per cent shares in assessee company and also holding more than 20 per cent shares in JP Iscon Ltd. Assessing Officer treated the unsecured loan as deemed dividend under provision of section 2(22)(e) by holding that  that both parties were closely held company and having common shareholders holding more than 20 per cent shares in each company i.e. assessee company and JP Iscon Ltd.  On appeal, Commissioner (Appeals) deleted addition made by Assessing Officer. On appeal by the Revenue the Tribunal held that  deemed dividend under section 2(22)(e) can only be assessed in hands of person who is a shareholder of lender company and not in hands of a person other than shareholder. In instant case, assessee-company was not holding any shares or rights of company JP Iscon Ltd, the  Assessing Officer was not justified in invoking provisions of section 2(22)(e) of the Act. (AY. 2007-08)