Where provisions of deemed dividend were invoked in the hands of the borrower company on account of the fact that the same shareholders held substantial interest in the lending and the borrowing company, the amount of deemed dividend cannot be brought to tax in the hands of the said shareholders unless it is shown that they have actually received the money. (AY. 2006-07)
Ramesh V. v. ACIT (2019) 177 DTR 105/ 104 taxmann.com 292 / 309 CTR 87/ ( 2020) 420 ITR 10 (Mad.)(HC) Ramu S. v. ACIT (2019) 177 DTR 105/ 309 CTR 87/ ( 2020) 420 ITR 10 (Mad.)(HC)
S. 2(22)(e) : Deemed dividend- Income cannot be taxed in the hands of the shareholders unless it is shown that the monies have been received by them.-Alleged admission- Matter remanded [ S.254 (1) ]