Deemed dividend if Lender and borrower have common shareholder?

CIT Vs Ms. Mustang Leather Pvt. Ltd. (Allahabad High Court)

A deemed dividend could only have been assessed in the hands of a person who is shareholder of the lender company and not in the hands of the borrowing concern in which such shareholder is a member or partner having substantial interest. Admittedly, in the present case the assessee-company was not a shareholder of the lender company. But, in this case both the lender and the borrower have common shareholders.

FULL TEXT OF THE HIGH COURT ORDER /Â

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