Car bought in shareholder's name not deemed dividend u/s 2(22)(e) when used solely for company business

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....ITAT held that payment by the company for purchase of a motor car registered in the name of the assessee, a substantial shareholder, does not automatically constitute deemed dividend u/s 2(22)(e). Being a deeming provision, s. 2(22)(e) requires that the payment confer a contemporaneous individual and personal benefit on the shareholder. On facts, the car was used for the company's business and there was no material to show personal or family use by the shareholder. Mere registration of the vehicle in the shareholder's name was held insufficient to establish personal benefit. Consequently, the addition made as deemed dividend was deleted and the assessee's appeal was allowed.....