2012 (4) TMI 624 - HC - Income Tax

Deemed dividend under section 2(22)(e) - Held that - Deemed dividend provisions cannot be invoked in such cases because the shareholders are common.

Summary

The Delhi High Court dismissed the Revenue's appeal against A. R. Magnetics Pvt. Ltd. for the assessment year 2006-07. The Assessing Officer's addition under section 2(22)(e) was deleted by the Tribunal, citing a previous decision that deemed dividend provisions cannot be applied when shareholders are common. The appeal was dismissed with no costs.