HC: Section 2(22)(e) Deemed dividend not to be assessed in the hands of partnership firm

CIT Vs. T. Abdul Wahid & Co. (Madras High Court) Conclusion: Section 2(22) (e) would stand attracted when a payment is made by a company, in which public are not substantial interested by way of advance or loan to a share holder, being a person who is the beneficial owner of the shares. Thus, deemed dividend under Section 2(22) (e) is to be assessed in the hands of the shareholder and not in the hands of the partnership firm. Held: AO had reopened assessment on the reason that a sum of Rs.2 Crores was shown as unsecured loan obtained from M/s A Pvt., Ltd. by assessee firm and one of the pa...