Life Span Infrastructure (India) Pvt. Ltd. vs. The Income Tax Officer

Parties Involved

Facts Summary

Life Span Infrastructure (India) Pvt. Ltd. is a private limited company that took a loan of Rs. 9,50,000/- from Nikunjam Constructions Pvt. Ltd. The Income Tax Officer treated the loan as deemed dividend under section 2(22)(e) of the Income Tax Act, 1961. The assessee appealed against this order, arguing that they were not a registered shareholder of Nikunjam Constructions Pvt. Ltd. and thus, the deemed dividend provision should not apply.…

Legal Issues

• 1. Whether the deemed dividend provision under section 2(22)(e) of the Income Tax Act, 1961 can be applied to the assessee who is not a registered shareholder of the company from which the loan was taken.

Judgment Outcome

Decided in favour of Assessee.

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