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| The Tax Publishers2020 TaxPub(DT) 5052 (Visakhapatnam-Trib) INCOME TAX ACT, 1961
Section 2(22)(e)
Where issue was as regards addition made for deemed dividend under section 2(22)(e), CIT(A) correctly deleted the addition following the order of Tribunal in assessee's own case for the earlier assessment year on identical facts wherein transactions were held to be business transactions as the non-business transactions were few and mostly were through journal entries and not receipts/payments.
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Dividend - Deemed dividend under section 2(22)(e) - Transactions held to be business transactions as the non-business transactions were few and mostly were through journal entries and not receipts/payments. -
Issue was as regards addition made for deemed dividend under section 2(22)(e), towards loans outstanding, wherein it was alleged that assessee got direct benefit from the company. CIT(A) deleted the addition by holding the loan as business transaction. Held: CIT(A) correctly deleted the addition following the order of Tribunal in assessee's own case for the earlier assessment year 2014-15 on identical facts wherein transactions were held to be business transactions. The non-business transactions were few and mostly were through journal entries and not receipts/payments. As facts were the same, , it was held that no direct or indirect benefit was derived by assessee warranting addition under section 2(22)(e).
Followed:Asst. CIT, Central Circle-1 Visakhapatnam v. Grandhi Bharata Mallika Visakhapatnam [I.T.A.No.51& 52/Viz/2018, dt. 21-8-2018].
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2015-16
IN THE ITAT, VISAKHAPATNAM BENCH
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