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The Tax Publishers2020 TaxPub(DT) 2272 (Del-Trib) INCOME TAX ACT, 1961
Section 2(22)(e)
Where assessee company advanced the loan to its associated concern, which was then transferred back to assessee company on same day as director's share capital, it was not case of deemed dividend under section 2(22)(e).
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Dividend - Deemed dividend under section 2(22)(e) - Transactions of receipt and payment on the same date -
Issue was as regards applicability of section 2(22)(e) in case transactions of receipt and payment were as on same date. Held: Assessee company advanced the loan to its associated concern, which was then transferred back to assessee company on same day as director's share capital, it was not case of deemed dividend under section 2(22)(e). When company got back its funds on same day, it could not fall into the definition of the 'deemed dividend'.
Followed:Surbhi Jain v. ITO [ITA No. 3993/Del/2015 vide Order, dated 14-5-2020] : 2020 TaxPub(DT) 2266 (Del-Trib) ACIT v. Seema Devi Bansal [ITA No. 6462/Del/2014 Order, dated 18-7-2018] : 2018 TaxPub(DT) 4726 (Del-Trib) Harish Kanwar v. ITO [ITA No. 529/Del/2017 Order, dated 18-10-2017] : 2017 TaxPub(DT) 4658 (Del-Trib) Pravin Bhimshi Chheda Shivsadan v. DCIT (2012) 141 TTJ 58 (Mum) : 2012 TaxPub(DT) 0498 (Mum-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2011-12
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