No deemed dividend in case of loan to borrower not being shareholder

Microfinish Valves Private Limited Vs ACIT (ITAT Bengalore) No deemed dividend u/s 2(22)(e) in case loan to borrower not being shareholder in lender company Conclusion: Since assessee was not a shareholder in lender company, therefore, AO was unjustified in taxing loan received by assessee as deemed dividend under section 2(22)(e). Held: Assessee was a company engaged in the business of manufacture of valves. It borrowed a certain sum from M/s. MPPL.  AO noticed that there were common directors in both assessee company and MPPL and therefore the borrowed sum received as advance from MPPL was ...