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2014 (2) TMI 475 - AT - Income TaxDeemed dividend u/s 2(22)(e) of the Act - Amount paid as loan and advances to Director – Held that:- There was credit balance of the assessee in the books of the company as on 1.4.2005 - the nature of the transaction is clearly in the nature of loan/advance received by the assessee from the company which is repaid in the subsequent year - Merely because there was a credit balance of the assessee with the company, it cannot be said that more amount received after the repayment of assessee's credit balance is not in the nature of loan and advance - After the repayment of the credit balance of the assessee in the books of the company, if assessee has received further amount, it was certainly in the nature of loan/advance which is to be repaid by the assessee and actually repaid by the assessee in the subsequent year – the arrangement between the assessee and the company was merely for the sake of convenience arising out of business expediency - no such business expediency has been established by the assessee in the case under appeal – decided against Assessee.
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