https://www.taxtmi.com/caselaws?id=751139 ITAT Kolkata held that deemed dividend provisions under section 2(22)(e) cannot be applied to the assessee who received loan from another group company. The tribunal ruled that beneficial ownership lies with the controlling company holding substantial interest in both lender and borrower companies. Since the assessee had no influence over the controlling company's decision-making process, the deeming fiction applies only to the beneficial shareholder, not the loan recipient. The addition treating loan as deemed dividend was deleted, allowing the assessee's appeal. en-us Mon, 19 Feb 2024 00:00:00 +0530 Mon, 08 Apr 2024 17:11:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751139 ITAT Kolkata held that deemed dividend provisions under section 2(22)(e) cannot be applied to the assessee who received loan from another group company. The tribunal ruled that beneficial ownership lies with the controlling company holding substantial interest in both lender and borrower companies. Since the assessee had no influence over the controlling company's decision-making process, the deeming fiction applies only to the beneficial shareholder, not the loan recipient. The addition treating loan as deemed dividend was deleted, allowing the assessee's appeal. Case-Laws Income Tax Mon, 19 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751139