2017 (6) TMI 875

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..... , Judicial Member This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Salem dated 06.12.2016 and pertains to the assessment year 2011-12. The only issue arises for consideration is assessment of deemed dividend U/s.2(22)(e) of the Income Tax Act, 1961 (in short 'the Act'). 2. Shri S. Sridhar, the Ld. counsel for the assessee submitted that admit .....

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..... that on whose benefit the money was received by the assessee company. 3. On the contrary Shri G.M. Dass, the Ld. Departmental Representative submitted that the money was advanced by M/s. Cheran Spinners Limited to the assessee's company. Even though, the assessee company is not a registered shareholder of M/s. Cheran Spinners Limited, the money was advanced for the benefit of the shareholders of .....

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..... td, whether there can be any assessment under deemed dividend U/s.2(22)(e) of the Act in respect of the sum received by the assessee. This was examined by the Madras High Court in M/s. Ennore Cargo Container Terminal P Ltd (supra). The Madras High Court found that both registered and beneficial shareholders are two individuals and the assessee company is neither a registered shareholder nor benefi .....

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