https://www.taxtmi.com/caselaws?id=260948 The Tribunal ruled in favor of the assessee, holding that the loan obtained from a group company should not be treated as deemed dividend under Section 2(22)(e) of the Income Tax Act. The Tribunal considered the legal precedent set by the Bombay High Court and other relevant judgments, emphasizing that only loans advanced to registered shareholders could be deemed dividends. As the assessee was not a shareholder of the lender company, the addition of Rs. 4,14,71,946/- was deemed unwarranted, and the appeal was allowed. The decision aligned with the interpretation that dividend income should be taxed in the hands of shareholders to prevent income evasion. en-us Tue, 14 Oct 2014 00:00:00 +0530 Sat, 27 Jun 2015 12:37:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=260948 The Tribunal ruled in favor of the assessee, holding that the loan obtained from a group company should not be treated as deemed dividend under Section 2(22)(e) of the Income Tax Act. The Tribunal considered the legal precedent set by the Bombay High Court and other relevant judgments, emphasizing that only loans advanced to registered shareholders could be deemed dividends. As the assessee was not a shareholder of the lender company, the addition of Rs. 4,14,71,946/- was deemed unwarranted, and the appeal was allowed. The decision aligned with the interpretation that dividend income should be taxed in the hands of shareholders to prevent income evasion. Case-Laws Income Tax Tue, 14 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=260948