Deemed dividend not taxable when borrower doesn’t hold shares in lender company

Arihant Fertiliser And Chemicals India Ltd. Vs DCIT (ITAT Indore)

ITAT Indore held that Deemed Dividend under section 2(22)(e) of the Income Tax Act is not taxable in hands of borrower-company who doesn’t hold shares in lender-company. Accordingly, appeal of the assessee allowed and addition set aside.

Facts- The assessee-company filed its return of income of relevant AY 2015-16 declaring a total income of Rs. 8,39,47,820/- which was assessed by way of scrutiny-assessment u/s 143(3) at a total income of Rs. 8,44,32,990/-.

Thereafter, the case of as

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