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| The Tax Publishers2021 TaxPub(DT) 1831 (Kol-Trib) INCOME TAX ACT 1961
Section 2(22)(e)
Where Revenue could not point out any defect in the observations made by CIT(A) that the provisions of section 2(22)(e) were not applicable in the case of the assessee as the loan was advanced to the shareholder in the ordinary course of business of lending of money by the said company, no addition could be made in the hands of assessee under section 2(22)(e).
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Dividend - Deemed dividend under section 2(22)(e) - Loans or advances to shareholders in the ordinary course of business of lending of money -
AO observed that the assessee company had taken loan from M/s. S in which the assessee-company was holding substantial interest, therefore, he treated the entire loan amount as deemed dividend under section 2(22)(e) and made the impugned addition. CIT(A) held that the provisions of section 2(22)(e) were not applicable in assessee's case as the loan was advanced by the said company in the ordinary course of its business. Held: Revenue could not point out any defect in the observations made by CIT(A) that the provisions of section 2(22)(e) were not applicable in the case of the assessee as the said loan was advanced to the shareholder in the ordinary course of business of lending of money by the said company. Thus, the findings of CIT(A) on this issue were accordingly upheld.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 14A
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