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TMI Blog2018 (12) TMI 1706X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of deemed dividend only to the extent of the loan amount which is further restricted to the extended of reserves and surplus of the Company advancing loan. Therefore in the relevant cases before us the aggregate additions in the hands of the shareholders who are the assessees cannot be made more than ₹ 53,69,803/-. Hence it would be an appropriate analogy that the entire amount which is liable to be treated as deemed dividend has to be apportioned between both the shareholders in whose cases the conditions stipulated for attracting the provisions of Section 2(22)(e) of the Act are satisfied. Therefore as pleaded by the Ld.AR, it would be judicious to make addition in the hands of both the assessee equally. - I.T.A. No. 2836/Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n M/s. Microprints Pvt. Ltd., and M/s. Tallboy Stationeries Pvt. Ltd., and are also Directors in both these Companies, filed their return of income and thereafter the assessment was reopened U/s.147 of the Act and finally assessment order U/s.143(3) r.w.s. 147 of the Act was passed on 17.01.2014 wherein the Ld.AO made addition of ₹ 53,69,803/- in the hands of each of the assessees invoking the provisions of Section 2(22)(e) of the Act because M/s. Chennai Micro Finance Pvt. Ltd., had extended an advance of ₹ 53,69,803/- to M/s. Tallboy Stationaries Pvt. Ltd., and the accumulated reserves surplus of M/s. Chennai Micro Finance Pvt. Ltd., was over and above the loan extended. 4. At the outset the Ld.AR submitted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made more than ₹ 53,69,803/-. Hence it would be an appropriate analogy that the entire amount which is liable to be treated as deemed dividend has to be apportioned between both the shareholders in whose cases the conditions stipulated for attracting the provisions of Section 2(22)(e) of the Act are satisfied. Therefore as pleaded by the Ld.AR, it would be judicious to make addition in the hands of Shri V. Ramesh an amount of ₹ 26,84,902/- and Shri S. Ramu - ₹ 26,84,901/-. It is ordered accordingly. 6. In the result the appeals of both the assessees are partly allowed as indicated herein above. Order pronounced on 24th December, 2018 at Chennai. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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