2010 (11) TMI 980

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.... ORDER PER JOGINDER SINGH, JM This appeal is by the assessees against the order of the learned CIT(A)-I, Indore, dated 1.10.2009. 2. The only ground pressed by the ld. Counsel for the assessee is that the ld. CIT(A) is not justified in affirming the addition on account of deemed dividend on the basis of accumulated profit. 3. We have considered the rival submission and perused the ma....

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....had accumulated profit of Rs. 56,077/- and Rs. 2,12,485/- as on 1.4.2005 and 31.3.2008 respectively. Scanning of the ledger of the assessee as appearing in the books of accounts of M/s. Resource Combine Solutions Pvt. Ltd. duly confirmed by it had revealed that the assessee had received and repaid the loan. The ledger of the assessee as appearing in the books of accounts of M/s. Resource Combine S....

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....ons other than a shareholder. It was further held that the expression "shareholder" referred to in sec. 2(22)(e) refers to both the registered shareholders and beneficiary shareholder, meaning thereby, for bringing such loan into the deeming provisions of sec. 2(22)(e) of the Act, the assessee must be both registered as well as beneficial shareholder of the lender company. If the assessee is merel....