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2002 (9) TMI 79 - HC - Income Tax"Whether the Tribunal was right in law and had valid materials in holding that the advance (rental) received by the assessee from the company in which he is a shareholder cannot be termed as a deemed dividend for the purpose of section 2(22)(e)?" - It is clear that the company had agreed to pay an advance of Rs. 10 lakhs when it had taken the first floor on lease for the purpose of meeting the cost of construction of the other three floors and that the lease deed provided explicitly that the advance so paid was to be adjusted against the rent payable for the other three floors. The amount of rent payable for those floors was also set out in the further lease. The advance therefore was required to be set off against the rents payable in future years and thus adjusted. The amount of Rs. 10 lakhs paid was clearly as advance, though it was an advance which was to be set off against the rents payable in future. - The question referred to us is therefore required to be and is answered in favour of the Revenue and against the assessee
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