2008 (3) TMI 310 - RAJASTHAN HIGH COURT

Deemed dividend under section 2(22)(e) - The assessee in the present case is not shown to be one of the persons being shareholder - Of course, the two individuals being Roop Kumar and Devendra Kumar are the common persons holding more than requisite amount of shareholding and having requisite interest in the firm but then thereby the deemed dividend would not be deemed dividend in the hands of the firm rather it would obviously be deemed dividend in the hands of the individuals on whose behalf or on whose individual benefit being such shareholder the amount is paid by the company to the concern - The assessee-firm whose partners hold 100% share in M/s. Hilltop Palace Hotels (P.) Ltd., had received the payment of ₹ 10 lakhs by way of security - the fact that substantial portion of this ₹ 10 lakhs of amount, say more than ₹ 9 lakhs, have been advanced only during January 7, 1991, to March 22, 1991, it is difficult to accept it as a security