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2014 (4) TMI 237 - HC - Income TaxDeemed dividend u/s 2(22)(e) of the Act – Payments towards loan or advance – Whether the receipt of share application money can be treated and recorded as loan, deposits and "any payment" for invoking the provisions of section 2(22)(e) of the Act - Held that:- The decision in CIT v. I. P. India Pvt. Ltd. [2011 (11) TMI 252 - DELHI HIGH COURT] followed - the word 'advance' has to be read in conjunction with the word 'loan' - Usually attributes of a loan are that it involves positive act of lending coupled with acceptance by the other side of the money as loan - it generally carries an interest and there is an obligation of repayment - in its widest meaning the term 'advance' may or may not include lending - The word 'advance' if not found in the company of or in conjunction with a word 'loan' may or may not include the obligation of repayment - If it does, then it would be a loan - the word 'advance' which appears in the company of the word 'loan' could only mean such advance which carries with it an obligation of repayment - Trade advance which are in the nature of money transacted to give effect to commercial transactions would not fall within the ambit of the provisions of section 2(22)(e) of the Act – Decided against Revenue.
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