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TMI Blog2016 (12) TMI 1772X X X X Extracts X X X X X X X X Extracts X X X X ..... and satisfied that there is a reasonable cause for delay and the same is condoned. 2. The assessee filed return of income for the AY 2008-09 and later on the AO issued notice u/s.148 and completed the assessment u/s.147 r/w Sec.143(3) on a total income of Rs. 17,26,790/-. During the reassessment proceedings, the AO found that the assessee is a Director and having more than 10% share holding in M/s.Shree Velu Builders (P) Ltd., a company in which public are not substantially interested. It was also noticed by the AO that the company was having accumulated profits of Rs. 84,51,787/- as on 31.03.2007 and it has transferred the flat constructed by the company valued at Rs. 38 lakhs to the assessee. After transfer of the flat of Rs. 38 lakhs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax Act. On the other hand the Ld.A.R. relied on the orders of the Ld.CIT(A) and the orders of this tribunal in his own case. 5. We heard the rival submissions and perused the orders of the lower authorities. As per Sec.2(22)(e) of the Income Tax Act deemed dividend is - "any payment by a company, not being company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) by way of advance or loan to a shareholder being a person who is the beneficial owner of shares holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest or nay payment by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he deemed dividend as per the provisions of the Sec. 2(22)(e) of the Income Tax Act. The Hon'ble Supreme Court in the case of Kanthilal Manilal Vs. CIT (41 ITR 275) held that "Dividend need not be distributed in money; it may be distributed by delivery of property or right having monetary value". We reproduced the relevant extract of the Hon'ble Supreme Court cited supra. Dividend need not be distributed in money; it may be distributed by delivery of property or right having monetary value. The resolution, it is true, did not purport to distribute the right amongst the shareholders as dividend. It did not also take the form of a resolution for distribution of dividend; it took the form of distribution of a right which had a monetary value. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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