https://www.taxtmi.com/caselaws?id=758274 ITAT Hyderabad ruled that deemed dividend under section 2(22)(e) cannot be taxed in the hands of a borrower company merely because both lender and borrower have common substantial shareholders. The provision applies only to actual shareholders of the lending company, not to related entities. Since the assessee was not a shareholder of the lender, despite common shareholding through a third party holding over 10% in both companies, section 2(22)(e) was inapplicable. The addition made by AO was deleted and the assessee's appeal was allowed. en-us Wed, 28 Aug 2024 00:00:00 +0530 Tue, 10 Sep 2024 10:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758274 ITAT Hyderabad ruled that deemed dividend under section 2(22)(e) cannot be taxed in the hands of a borrower company merely because both lender and borrower have common substantial shareholders. The provision applies only to actual shareholders of the lending company, not to related entities. Since the assessee was not a shareholder of the lender, despite common shareholding through a third party holding over 10% in both companies, section 2(22)(e) was inapplicable. The addition made by AO was deleted and the assessee's appeal was allowed. Case-Laws Income Tax Wed, 28 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758274