Dismissing the appeal of the assessee the Court held that; the assessee was holding more than 10 per cent of equity shares of lending company and also having substantial interest in borrowing company i.e. 45 per cent shareholding of OFPL. Accordingly the order of Tribunal is affirmed. (AY.2007 -08)( Note .ACIT v. Bhaumik Colours Pvt Ltd ( 2009) 313 ITR (AT) 146 (Mum) (SB) is affirmed )
Sahir Sami Khatib v. ITO (2018) 259 Taxman 160/ 172 DTR 305/ ( 2019) 411 ITR 637/ ( Bom) (HC)/Sarosh Sami Khatib v. ITO (2018) 259 Taxman 160/ 172 DTR 305// ( 2019) 411 ITR 637 (Bom) (HC)
S. 2(22)(e) : Deemed dividend –Loan to share holder -Holding more than 10 per cent of equity shares of lending company and also having substantial interest in borrowing company- Amount of loan given by lender company to borrower company is held to be assessable as deemed dividend.