Court allows appeal delay, dismisses. Loan by Cargill not "deemed dividend" under Income Tax Act.

The court condoned the delay in re-filing the appeal and dismissed it. It held that the loan given by M/s Cargill Global Trading India Private Limited to the respondent was not "deemed dividend" under Section 2(22)(e) of the Income Tax Act, 1961, as the entities involved were not directly related.

---

---

Issues:
1. Condoning delay in re-filing appeal
2. Treatment of loan as "deemed dividend" under Section 2(22)(e) of the Income Tax Act, 1961

Analysis:
1. The court first addressed the issue of condoning a delay of 30 days in re-filing the appeal. The court, after considering the reasons stated in the application, decided to condone the delay and disposed of the application.

2. Moving on to the main issue, the court examined the contention of the Revenue regarding the loan given by M/s Cargill Global Trading India Private Limited to the respondent-assessee, M/s Cargill India Private Limited, being treated as "deemed dividend" under Section 2(22)(e) of the Income Tax Act, 1961. The court noted that M/s Cargill Global Trading India Private Limited is a one step down subsidiary of M/s Cargill Inc USA, while the respondent-assessee is a two step down subsidiary of M/s Cargill Inc USA. The subsidiaries of these entities are different and not common. Therefore, the court concluded that it is not feasible to consider the respondent-assessee as a shareholder or beneficial owner of the shares in M/s Cargill Global Trading India Private Limited.

3. Based on the above analysis, the court held that the loan given by M/s Cargill Global Trading India Private Limited cannot be treated as "deemed dividend" paid to the respondent-assessee. Consequently, the court found no merits in the appeal and dismissed it accordingly.

---