Dismissing the appeal of the revenue the Tribunal held that deemed dividend can be assessed only in hands of a person who is a shareholder of lender company and not in hands of a person other than a shareholder Followed ACIT v. Bhaumik Colour Labs (P.) Ltd( 2009) 118 ITD 1 ( SB) (Mum) ( Trib)( AY.2012-13)
Microfinish Valves (P.) Ltd. ACIT (2019) 174 ITD 199 (Bang) (Trib.)
S. 2(22)(e):Deemed dividend- Share holder-Can be assessed only in hands of a person who is a share holder of company and not in hands of a person other than a share holder . [ S.2(32) ]