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2014 (11) TMI 324 - HC - Income TaxDeemed dividend u/s 2(22)(e) - Applicability of the exclusionary clause - Lending of money includes hire purchase, transactions amounts to deemed dividend or not – Held that:- The Assessee states that there is no dispute about the applicability of the ingredients and the provision - the Tribunal held that the hire purchase transactions conducted by SFL are not in the nature of a loan but SFL owns the assets which are given on hire by it – the Tribunal has not considered the nature of the transactions of the company before determining as to whether, within the meaning of exclusionary clause (ii) of Section 22(2)(e) of the Act, the lending of money is a substantial part of the business of the company - According to the assessee, the exclusionary clause would be attracted because the lending of money constitutes a substantial part of the business of the company - it would not be possible to decide the issue of the applicability of the exclusionary clause merely on an a priori basis and it would be appropriate to restore the proceedings back to the Tribunal for a decision afresh – thus, the matter is remitted back to the Tribunal for fresh adjudication – Decided in favour of assessee.
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