2019 (7) TMI 168

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....e assessee, submitted that the only issue arises for consideration is addition made by the Assessing Officer under Section 2(22)(e) of the Income-tax Act, 1961 (in short 'the Act'). The Ld.counsel submitted that that the Assessing Officer made addition of Rs. 74 lakhs being the amount received from M/s Souther Chromatics Pvt. Ltd. as deemed dividend under Section 2(22)(e) of the Act. According to the Ld. counsel, the loan received by the assessee-company from M/s Southern Chromatics Pvt. Ltd. cannot be construed to be deemed dividend in the hands of the assessee. According to the Ld. counsel, the assessee-company is not a registered shareholder of M/s Southern Chromatics Pvt. Ltd. On a query from the Bench who are the shareholders i....

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..... ...... ...... (c) ...... ...... ....... ...... ...... ...... ...... ...... (d) ..... ...... ....... ...... ...... ...... ...... ...... (e) any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) made after the 31st day of May, 1987, by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten per cent. of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest (he....