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2014 (5) TMI 234 - ALLAHABAD HIGH COURTDeemed dividend u/s 2(22)(e) of the Act – Advance interest on loan – Held that:- The Tribunal was clearly in error in allowing the appeal on the ground that the first part of the ingredient of the exclusionary provision of section 2(22)(e) namely clause (ii) was not fulfilled - The basis of the reasoning of the Tribunal is clearly erroneous - The Tribunal has misapplied the legal test in holding that since the companies did not carry on money lending business, the advances which were made to the assessee would not be in the ordinary course of its business - the Tribunal has not considered the issue as to whether the second ingredient of clause (ii) was duly fulfilled, thus, the matter is required to be remitted back to the Tribunal for fresh evaluation – Decided in favour of Assessee.
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