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2011 (9) TMI 363 - HC - Income TaxDeemed Dividend - Trading transaction - Treatment of unsecured loan given to shareholder of company (holding 50% of shares) as deemed Dividend - Held that:- the amount was not in the nature of 'advance' or 'loan' and in fact there was a business transaction between the assessee and company and the amount reflected running business relationship and there was a running account maintained by the assessee showing those transactions as in the books of accounts, though the amount was shown as “unsecured loan”. - It is trite law that mere nomenclature of entry in the books of accounts is not determinative of the true nature of transaction. See Commissioner of Income Tax Vs. India Discount Co. Ltd. (1969 -TMI - 5158 - SUPREME Court) - the payment made were the result of trading transaction between the parties and the amount was not given by way of loan or advance. - Decided against the revenue.
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