Addition of deemed dividend in the hands of non-shareholders is unsustainable

DCIT Vs Aaryavart Infrastructure P. Ltd. (ITAT Ahmedabad) ITAT Ahmedabad held that addition on account of deemed dividend as per section 2(22)(e) of the Act unsustainable in the hands of non-shareholders. Facts- While adjudicating the issue of deemed dividend, the ld.CIT(A) held that as per the provision of law, the loans and advances given to the assessee by related parties could be treated as deemed dividend only to the extent of reserves and surplus available with them, and accordingly taking note of reserves and surplus with the said party, he held that the addition in any case could not h...