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2016 (6) TMI 1235 - HC - Income TaxDeemed dividend u/s 2(22)(e) - amounts received as share application by companies from companies in both of which the assessee has beneficial interest - whether is not loans and advances for the purposes of invoking section 2(22)(e) - Held that:- We have today passed an order in respect of the same respondent- assessee for the assessment year 2006-07 [2016 (6) TMI 1225 - BOMBAY HIGH COURT] as held that the share application money cannot be treated as loans and advances for purposes of section 2(22)(e) of the Act. Moreover, on examination of the facts, both the Commissioner of Income-tax (Appeals) and the Tribunal have held that what was received was share allotment money and, therefore, could not be considered to be a loan and/or advance. It is to be further noted that it is not the case of the Revenue that the transaction of taking money for allotment of shares was a colourable device to evade taxes. - Decided in favour of assessee.
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