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2010 (4) TMI 677 - AT - Income TaxDeemed Dividend - addition under section 2(22)(e) – Assessee is the managing director of M/s Doshi Housing Ltd. (DHL for short) was having substantial holdings of shares, therein whereby any advances or loans received by him from the said company would invite application of section 2(22)(e) of the Act - Assessee was acquiring the property for and on behalf of DHL Though some such properties were held in his name, on certain others only power of attorney was obtained - Assessee had become the owner of the land with the company’s money and having shown capital gains therefrom, it could not be said that there was no benefit received by him from the money or advance received from DHL - Hon’ble Apex Court in the case of Navnit Lal C Javeri v. K.K.Sen (1964 -TMI - 49340) held that the intention of considering loans/advances received by an interested shareholder as the deemed dividend was to quell the mischief of taking substantial Loans or advances instead of receiving pay out through dividends, so as to avoid payment of tax – In the present case there is no intention to evade tax - Decided in favor of assessee.
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