The ITAT in the case of Mr. Tushar Kothari vs. DCIT held that the provisions of deemed dividend would not attract if assessee was not a shareholder in the payer company. Instant appeal was preferred by the assessee against the impugned order of CIT (A), New Delhi for the assessment year 2010-11, wherein upheld the addition of Rs. 10 lakh as deemed dividend u/s 2(22)(e) of the Income Tax Act, 1961. While filing the return of income AO found that M/s Beehive Systems Private Limited had advanced Rs.10 lakh to its Director Tushar Kothari (assessee) who was holding 46% of the shares in the said company. In reply, assessee told that he was not covered by the provisions of section 2(22) (e) of the Act. However, AO added back the amount and the same was confirmed by the CIT (A). Further aggrieved assessee carried the matter before the ITAT and challenged the confirmation of addition contending that assessee is not a shareholder of M/s Beehive Technologies Private Limite...
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