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2014 (7) TMI 141 - HC - Income TaxDeemed dividend u/s 2(22)(e) - circuitous transaction – Loan or advance - Held that:- The Tribunal was of the view that the transaction was a circuitous transaction and the money which initially belongs to M/s. Swati Energy and Projects Pvt. Ltd. was returned to the same company on the very same day through M/s. Power Service Corporation - this is not a loan or advance so as to attract section 2(22)(e) - The Tribunal may have addressed itself to the status of Mr. Manish Dedhia and the financial position of M/s. Power Service Corporation possibly to take care of the argument of the revenue that these were entities closely connected and possibly the money was routed through them although there was no genuine business transaction - In taking care of that argument, the status and financial position of all the entities, their annual income has been referred by the Tribunal - the transaction essentially carried out is not falling u/s 2(22)(e) - the Tribunal cannot be said to be perverse or vitiated by any error of law apparent on the face of the record. Decision of Apex Court in Smt.Tarulata Shyam and Others [1977 (4) TMI 3 - SUPREME Court] and L. Alagusundaram Chettiar [1996 (10) TMI 73 - SUPREME Court] distinguished wherein it was held that, The assesssee could not escape the rigour of the law merely because the transaction has been routed by the assessee in a different way - Decided against Revenue.
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