TaxTMI 
TaxTMI 
2015 (1) TMI 1165
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....sp;"Whether the facts and in the circumstances of the case and in law, the Tribunal is right in placing reliance on the judgment in the case of ACIT v/s. M/s. Bhaumik Colours Pvt. Ltd. whereas in the instant case, the assessee is a registered and beneficial share holder of a company that has given loans to a third company that lent these, monies to the Assessee?". 3. We find that the impugned order has upheld the order of the CIT(A) dated 28th March, 2011, holding that the issue arising before it was covered by the decision of the Special Bench of the Tribunal in Bhaumik Colours Pvt. Ltd. 313 ITR 146 (AT) read with decision of this Court in CIT v/s. Universal Medicare Pvt. Ltd. 324 ITR 263. It is pertinent to note that in paragraph 6 of ....
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....ph is that Departmental Representative placed reliance upon the decision of the Assessing Officer in support of her submission that the decision of the Supreme Court in L Alagusundaram Chettiar vs. CIT 252 ITR 893 supports the case of the Revenue. At that time, the Tribunal pointed out that same deals with deemed dividend under Income Tax Act, 1922 while the decision of this High Court in Universal Medicare Pvt. Ltd. (supra) deals with Act. 5. Be that as it may to avoid needless controversy, we have considered the challenge of the Revenue to the impugned order independently and not shut out the Revenue because of the concession made by it before the Tribunal. 6. The undisputed facts are that the assessee received loan from one M/s. NS....
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....High Court in CIT v/s. Hotel Hilltop 313 ITR 116 to uphold the order of the Commissioner of Income Tax (Appeals). Thus upholding the conclusion that deemed dividend can be assessed only in the hands of a shareholder of the lender company. In this case, the RespondentAssessee is admittedly not the shareholder of M/s. NS Fincon (P) Ltd. 9 This Court in the case of Universal Medicare (supra) while approving the decision of the Special Bench of the Tribunal in Bhaumik Colours (supra) inter alia observed that: "All payments by way of dividend have to be taxed in hands of the recipient of the dividend namely the share holder. ... ... .... .... Consequently, the effect of clause ....
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....here cannot be imposition of any tax without the authority of law. Such a law has to be unambiguous and should prescribe the liability to pay taxes in clear terms. If the provision concerned of the taxing statue is ambiguous and vague and as susceptible to two interpretations, the interpretation which favours the subjects, as against the Revenue, has to be preferred. This is a wellestablished principle of statutory interpretation, to help finding out as to whether particular category of assessee is to pay a particular tax or not. No doubt, with the application of this principle, the courts make endeavour to find out the intention of the legislature. At the same time, this very principle is based on "fairness" doctrine as it lays down that i....