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2010 (2) TMI 980 - AT - Income TaxDeemed dividend u/s 2(22)(e) - assessee has taken advances/ loans from various companies where he is holding more than 10 percent shares - HELD THAT:- The assessee right from the very beginning is contending that he is in the business of brokering of real estate. The companies whenever had any surplus fund they advance it to the assessee for making investment in the real estate. Neither the assessee nor the companies are disputing this conduct. The assessee is claiming these advances as advance for investment in his books of account. This aspect has not been disputed by the AO. Argument of business advance for taking away the amount from the ambit of deemed dividend can be considered only when advancing company is in the money lending business. The nature of the assessee’s business is such that he is earning income from brokerage of real estate. He alleged that these companies have advanced money for investment in the real estate. This demonstrates that money was taken by the assessee in the line of his business. AO has not brought any contrary material on the record rather he presumed every type of amount as deemed dividend. Taking into consideration this approach of the AO vis-a-vis the contention of the assessee and the judgment of Creative Dyeing and Printing Pvt.[2009 (9) TMI 43 - DELHI HIGH COURT] we allow the first fold of grievance raised by the assessee and delete the additions. Addition of repair, maintenance and depreciation of vehicles, etc - HELD THAT: - As We merit in the ground raised by the assessee because he failed to submit the complete details in respect of vehicle expenses, car maintenance, etc. AO has made a disallowance at one-tenth of the total expenses. The disallowance has rightly been estimated because possibility of personal use of these facilities cannot be ruled out. More so learned counsel for the assessee at the time of hearing did not advance any specific arguments on these issues. Appeal of assessee partly allowed.
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