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2014 (4) TMI 303 - AT - Income TaxDeemed dividend u/s 2(22)(e) of the Act – Loans received – Held that:- CIT(A) was right in holding that all the facts were not taken into consideration by the AO while passing the assessment orders - The assessment orders do not contain any reference to them - The AO went entirely wrong in observing that the interest income of M/s Shivalik Dairies was a part of about 0.02% of gross receipt – Relying upon CIT vs. V.S. Shiva Subramaniam [1996 (1) TMI 18 - MADRAS High Court] - where the assessee was a shareholder in a company doing only money lending business, the loan taken by the assessee could not be treated as deemed dividend, even though the company had accumulated profits – thus, the amount of loan from M/s Shivalik Dairies Pvt. Ltd. by the assessee was loan in the ordinary course of business and for that interest has been charged during the year and in subsequent years - The receipt and payment of money to give effect commercial transactions does not fall within the definition of the deemed dividend u/s 2(22)(e) of the IT Act - Revenue has not been able to counter the observations of the CIT (A) – Decided against Revenue.
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