2017 (6) TMI 875

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....ss, CIT ORDER Per N. R. S. Ganesan, Judicial Member This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Salem dated 06.12.2016 and pertains to the assessment year 2011-12. The only issue arises for consideration is assessment of deemed dividend U/s.2(22)(e) of the Income Tax Act, 1961 (in short 'the Act'). 2. Shri S. Sridhar, the Ld. c....

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....sessee company if at all there was a finding that on whose benefit the money was received by the assessee company. 3. On the contrary Shri G.M. Dass, the Ld. Departmental Representative submitted that the money was advanced by M/s. Cheran Spinners Limited to the assessee's company. Even though, the assessee company is not a registered shareholder of M/s. Cheran Spinners Limited, the money was a....

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....registered shareholder of M/s. Cheran Spinners Ltd, whether there can be any assessment under deemed dividend U/s.2(22)(e) of the Act in respect of the sum received by the assessee. This was examined by the Madras High Court in M/s. Ennore Cargo Container Terminal P Ltd (supra). The Madras High Court found that both registered and beneficial shareholders are two individuals and the assessee compan....