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2017 (10) TMI 1477 - RAJASTHAN HIGH COURTDeemed dividend under Section 2(22) (e) - Addition on account of advance given to Gulam Farroq Ansari which was accepted by the assessee during the search that the amount was paid out of books - - HELD THAT:- Trade advances, which are in the nature of commercial transactions would not fall within the ambit of the word 'advance' in section 2(22)( e) of the Act As per clause 10 the purchaser was free to do the development work on the land and was also free to sell the same to any third-party for which the assessee had no objection. In view of these facts, it cannot be said that it was a loan or an advance to the assessee. The contents of the sale agreements are very much clear that it was a clear cut agreement of sale. No contrary facts or decision was brought to our notice by either side and more specifically the Revenue. In view of these facts, we are not in agreement with the conclusion drawn in the assessment order and affirm the stand of the learned CIT (A ) in accepting the claim of the assessee, resultantly, there is no merit in the appeal of the Revenue.
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