https://www.taxtmi.com/caselaws?id=266163 The ITAT Chennai ruled that Section 2(22)(e) of the Income-tax Act, 1961 did not apply as the assessee-company was not a shareholder in the sister concern. The transaction involving an advance for purchasing iron ore was deemed a commercial nature and not deemed dividend. The court emphasized that payments benefiting shareholders should be treated as deemed dividend, clarifying that when the recipient company is not a shareholder, Section 2(22)(e) does not apply. This case sets a precedent for distinguishing between commercial transactions and deemed dividends in related company dealings. en-us Fri, 26 Jun 2015 00:00:00 +0530 Sat, 17 Oct 2015 23:28:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=266163 The ITAT Chennai ruled that Section 2(22)(e) of the Income-tax Act, 1961 did not apply as the assessee-company was not a shareholder in the sister concern. The transaction involving an advance for purchasing iron ore was deemed a commercial nature and not deemed dividend. The court emphasized that payments benefiting shareholders should be treated as deemed dividend, clarifying that when the recipient company is not a shareholder, Section 2(22)(e) does not apply. This case sets a precedent for distinguishing between commercial transactions and deemed dividends in related company dealings. Case-Laws Income Tax Fri, 26 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=266163