2010 (7) TMI 1041

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....Garodia (Accountant Member) 1. This is the revenue's appeal directed against the order of Ld. CIT(A) XVI, New Delhi dated 25.02.2010 for the Assessment Year 2006-07. The grounds raised by the revenue are as under: "1) On the fact and circumstances of the case New Delhi in law the Ld. CIT(A) erred in holding that the addition of Rs. 6,05,29,778/- made by the A.O. as deemed dividend u/s ....

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....lders i.e. the shareholders holding not less than 10% of the voting power in the lending company and having substantial interest in the borrowing concern have different percentage of shareholding in the lending company say 17% & 27% and again a different percentage of shareholding say 21% & 29% interest in the borrowings concern. In such a situation what amount of the deemed dividend will be taxed....

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....(A) in Para 3.2 of his order that there is no dispute that the A.O. has proceeded to make addition on account of deemed dividend on the basis of common shareholding of one of the directors namely Shri B R Arora in 3 companies i.e. the assessee company and the two companies form whom loans were received by the assessee company. Ld. CIT(A) has decided this issue by following the decision of Special ....

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.... Ltd. and M/s. Aircon Developers Pvt. Ltd. as prescribed in Section 2(22)(e) of the I. T. Act. It was held by the Special Bench of this Tribunal in the case of Bhaumik Colours Pvt. Ltd. (supra) that deemed dividend can be assessed only in the hands of a person who is a shareholder in the lender company and not in the hands of a person other than a shareholder. It was also held by the Special Bench....