Revenue's Application Rejected: Loan Not Deemed Dividend

The High Court of Allahabad rejected the Revenue's application under section 256(2) of the Income-tax Act, 1961. The Tribunal's ruling that the advance could not be deemed as dividend due to the assessee not being a shareholder at the time of the loan was upheld. The decision remained unchallenged, resulting in the rejection of the application.

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The High Court of Allahabad rejected the Revenue's application under section 256(2) of the Income-tax Act, 1961. The Tribunal ruled that the advance could not be considered as deemed dividend as the assessee was not a shareholder when the loan was advanced. This finding was not challenged and the application was rejected.

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