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2015 (4) TMI 1047 - AT - Income TaxAddition u/s.2(22)(e) for deemed dividend - CIT(A) deleted the addition - advance received from M/s.Giriraj Developers Pvt. Ltd. as unsecured loan - Held that:- CIT(A) having considered the submission on behalf of assessee observed that as per CBDT's Circular No.495 dated 22.09.1987 i.e. Explanatory Notes on provisions of Finance Act, 1987, payment of any kind received by assessee is to be taxed as deemed dividend u/s. 2(22)(e) in the hands of concern received in the payment and not the shareholder. ITAT Special Bench in case of Bhaumik Colour P. Ltd. (2008 (11) TMI 273 - ITAT BOMBAY-E ) held that such deemed dividend is to be assessed only in the hands of shareholder and not the borrowing concern in which such shareholder is a member or partner having substantial interest. In view of above addition u/s. 2(22)(e) was directed to be deleted in the hands of assessee. This reasoned finding of CIT(A) needs no interference from our side. We uphold the same. - Decided in favour of assessee Addition u/s 41(1) on account of cessation of liabilities - CIT(A) deltd the addition - Held that:- CIT(A) held that merely because of lapse of period of three years, it cannot be said that liabilities had ceased or were remitted. Assessee is liable to pay certain amounts and liability. Once assessee recognize this as its liability, it does not cease to be its liability. Provisions of limitations are not applicable to the person liable for making payment. Under the facts and circumstances, CIT(A) was justified in deleting the addition - Decided in favour of assessee
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