2018 (2) TMI 1472

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....m Agarwal,S.S.C. I.T. ORDER Heard Sri Shubham Agrawal, learned Counsel for the appellant. As the controversy involved in both these appeals is identical, therefore, both the appeals are being heard and decided by a common judgement and order treating this appeal as a leading case. This is an appeal filed by the revenue under Section 260-A of the Income Tax Act, 1961 against an order of....

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....y, in the present case the assessee-company was not a shareholder of the lender company. But, in this case both the lender and the borrower have common shareholders. This view has recently been taken by Delhi High Court in the case of CIT v. Ankitech (P) Ltd. & Ors reported in (2011) 242 CTR. For ready reference we quote paragraph nos. 25 and 28 of the said judgement :- "25. Further, i....

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....s supposed to distribute the profits in the form of dividend to its shareholders/members and such dividend cannot be given to non-members. The second category specified under Section 2(22) (e) of the Act, viz., a concern (like the assessee herein), which is given the loan or advance is admittedly not a shareholder/member of the payer company. Therefore, under no circumstance, it could be treated a....