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2014 (2) TMI 425 - AT - Income TaxAddition made u/s 2(22)(e) of the Act – Deemed dividend - Held that:- Inspite of the request of the Assessee, the company was unable to release the property from the mortgage - the advance given was not a gratuitous advance to the shareholder but was given to protect the interest of the Company and therefore the advance was held not to be in the nature of deemed dividend – Relying upon P. Sarada Vs CIT [1997 (12) TMI 1 - SUPREME Court] - The assessee must be deemed to have received dividends on the dates on which she withdrew the aforesaid amounts of money from the company - The loan or advance taken from the company may have been ultimately repaid or adjusted but that will not alter the fact that the assessee, in the eye of law, had received dividend from the company during the relevant accounting period - the amount received by the Assessee will have to be considered as deemed dividend and therefore we find no infirmity in the order of A.O. and CIT(A) - Decided against Assessee. Denial in deduction of Interest – Interest paid on borrowings – Repayment of housing loan – Held that:- There are no details of the parties from whom the Assessee had borrowed funds and the interest paid to him - there is no certificate of Bank certifying the repayment of loan and closure of the bank loan account of Assessee – the Assessee has not submitted any evidence to support that the interest payment was allowed while making assessments in past and in subsequent years – the issue needs to be re-examined at the end of AO – thus, the matter remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee.
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