https://www.taxtmi.com/caselaws?id=758539 ITAT Delhi dismissed revenue's appeal regarding deemed dividend under Section 2(22)(e) and deemed interest income under Section 56(1). The tribunal held that deemed dividend is taxable in hands of shareholders, not the loan recipient company, following precedents from Orissa HC and ITAT Delhi. Since assessee company was not a shareholder in lending companies, deemed dividend was not taxable in its hands. Regarding deemed interest income, ITAT upheld CIT(A)'s finding that notional interest savings on interest-free loans cannot be taxed as deemed income in borrower's hands, as no statutory provision exists for such taxation. en-us Thu, 29 Aug 2024 00:00:00 +0530 Mon, 16 Sep 2024 07:59:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758539 ITAT Delhi dismissed revenue's appeal regarding deemed dividend under Section 2(22)(e) and deemed interest income under Section 56(1). The tribunal held that deemed dividend is taxable in hands of shareholders, not the loan recipient company, following precedents from Orissa HC and ITAT Delhi. Since assessee company was not a shareholder in lending companies, deemed dividend was not taxable in its hands. Regarding deemed interest income, ITAT upheld CIT(A)'s finding that notional interest savings on interest-free loans cannot be taxed as deemed income in borrower's hands, as no statutory provision exists for such taxation. Case-Laws Income Tax Thu, 29 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758539