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2009 (1) TMI 534 - HC - Income TaxDeemed dividend - Held that:- Whether the amount was dividend under section 2(22)(e ) or not is a question of law. An assessee is not expected to be well versed in law when it comes to dealing with the interpretation of a deeming provision. Therefore, in such a situation, a surrender made by the assessee under mistaken impression of law cannot be the sole ground for making the addition. It is a trite law to say that the principle of estoppel originated in the last contract and it has no application in the realm of fiscal statute, where the question has to be decided on proper appreciation of fact and the interpretation of law. Thus the amount was received by the assessee as advance for supply of zippers and it was a commercial transaction. It could also not be said that any benefit accrued to the assessee. Accordingly, it is held that the learned CIT (Appeals) erred in sustaining the aforesaid addition.
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