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TMI Blog2014 (5) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... s dividend u/s 2(22)(e) only in case of a person who is a shareholder of the payer company, both registered as well as beneficial - the amount cannot be considered as the income of the debtor or the recipient concern or company -there could be no escapement from assessment qua the same - the view entertained by the AO is without any basis in law - there was no valid assumption of jurisdiction in the first place - the reopening of the assessment on that ground per section 148 is bad in law – Decided against Revenue. - I.T.A. No. 2880/Mum/2012 - - - Dated:- 30-4-2014 - Shri D. Manmohan, VP And Shri Sanjay Arora, AM,JJ. For the Appellant : Shri Ptambar Das For the Respondent : None ORDER Per Sanjay Arora, A. M.: T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sai and Smt. Jayshree B. Desai; their shareholding in the two companies being as under: Company/Shareholder Uday B. Desai Jayshree B. Desai Unicorn Connectors P. Ltd. 40.16% 20.96% Unimark Exim P. Ltd. 22.50% 27.50% A scrutiny of the books of account of the assessee-company revealed a loan from one, M/s. Unicorn Connectors P. Ltd., outstanding at Rs.5,23,441/- as at the year-end (i.e., 31.03.2005), with Rs.3,17,159/- being advanced therein during the current year. Further, M/s. Unicorn Connectors P. Ltd. had an accumulated profit of Rs.9,60,128/- as at 31.03.2005. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h stood admitted by it since. As such, it cannot be said that the Assessing Officer (A.O.) could not entertain or hold a honest belief that the assessee was liable to be assessed in respect of deemed dividend u/s.2(22)(e) r/w s. 56 of the Act and, therefore, that income to that extent had escaped assessment. For all we know, the hon ble court may well have upheld the Revenue s stand. So however, the hon ble court has vide its decision dated 22.03.2010 (so that it would have been admitted prior thereto, or as on 18.03.2010) in the case of CIT vs. Universal Medicare Pvt. Ltd. [2010] 324 ITR 263 (Bom) clarified that the deemed dividend could only be assessed in the hands of the share-holder, i.e., for whose benefit the loan or advance is given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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