Deemed dividend assessable in the hands of Partners (Beneficial Shareholders )

M/s. Kerala Transport Co. Vs. ACIT (ITAT Cochin) The Tribunal held that the beneficial shareholders of the lender company are partners of the assessee- firm and therefore the deemed dividend u/s 2(22)(e) has to be assessed only in the hands of the partners and not in the hands of the assessee- firm. FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:- These two Miscellaneous Applications at the instance of the assessee arise out of the consolidated order of the Tribunal dated 30.08.2013 in ITA Nos. 352 & 353/Coch/ 20 13. The relevant assessment years are 2007-2008 and 2008-2009. 2. Brief facts of t...