Assessee is a private company and engaged in business of civil construction. During year under consideration had shown unsecured loan from\u00a0 JP Iscon Ltd. There were common shareholders in assessee-company and\u00a0 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\u00a0 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.\u00a0 On appeal, Commissioner (Appeals) deleted addition made by Assessing Officer. On appeal by the Revenue the Tribunal held that\u00a0 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\u00a0 Assessing Officer was not justified in invoking provisions of section 2(22)(e) of the Act. (AY. 2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 2(22)(e) : Deemed dividend-Loans or advances to shareholders-Deemed dividend 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. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31066","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-854","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=31066"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31066\/revisions"}],"predecessor-version":[{"id":31067,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31066\/revisions\/31067"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=31066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=31066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=31066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}