Shareholding of one partner and not cumulative holding of all partners should exceed 10% to invoke sec. 2(22)(e)

Section 2(22) of the Income-tax Act, 1961 - Deemed dividend (Loans or advances) - Assessment year 2007-08 - Whether where shareholding of each partners of firm as well as of firm in closely held company is less than 10 per cent while their cumulative shareholding is more than 10 per cent, section 2(22)(e) cannot be resorted to treat amount advanced by company as deemed dividend - Held, yes [Para 8] [In favour of assessee]

Refer:[2014] 45 taxmann.com 370 (Punjab & Haryana)

HIGH COURT OF PUNJAB AND HARYANA

Commissioner of Income-tax-I, Ludhiana
v.
Octave Apparels