Deemed Dividend not applicable if recipient of loan is not a shareholder

ACIT Vs Herbert Brown Pharmaceuticals & Research Laboratories (ITAT Mumbai) The learned Departmental Representative relied upon the order of the Assessing Officer and submitted that though the recipient of loan or advance by the company is not a shareholder but is a concern in which shareholders are having substantial interest. He submitted that the learned Commissioner (Appeals) has incorrectly interpreted the provisions of section 2(22)(e) even though at least one shareholder holding 30% share in the company and 45% share in the assessee’s firm. While concluding, the learned Departmen...