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2009 (1) TMI 519 - AT - Income TaxDeemed dividend - Inter corporate deposit vis a vis Loan & Advances - Unsecured loan from various companies - lending substantial part of business of assessee - Held That:- Deposits cannot be equated with loans or advances. (Durga Prasad Mandelia’s case) - Interest on inter-corporate deposits is not an interest on loan or advance and therefore would not be includible in the chargeable interest under the Interest-tax Act." - 2(22) is a deeming fiction and cannot be give a wider meaning - The requisite condition for invoking section 2(22)( e) of the Act is that payment must be by way of loan or advances. Since there is a clear distinction between the inter-corporate deposits vis-a-vis loans/advances, according to us the authorities below were not right in treating the same as deemed dividend under section 2(22)(e) of the Act. Capital Gain - Held That:- Self generated assets are not liable to tax prior to the introduction of the words "Trademark or Brand name associated with a business".Therefore, for the relevant assessment year the sale receipts on account of transfer of trademark/brand name mentioned above is not liable to capital gain tax. - The same has been clarified by the judgment of the Hon’ble Delhi High Court in the case of Milk Food Ltd. (2005 - TMI - 9369 - DELHI High Court ) - Decided in favor of assessee.
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