Allowing the appeal the Court held that the deemed dividend should be taxed in the hands of the individual director of the company and not in the hands of the assessee. In terms of section 2(22)(e) the deemed dividend was taxable in the hands of the shareholder and not the assessee which did not hold the shares in the company and the Tribunal had needlessly remanded the matter to the Commissioner (Appeals). The order of the Commissioner (Appeals) was affirmed.(AY.2011-12)