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2014 (12) TMI 442 - HC - Income TaxAddition made to total income – Addition treated as dividend income u/s 2(22)(e) - Whether the Tribunal was justified in drawing an adverse conclusion against the appellant by overlooking the specific finding of the CIT (A) that both the lending companies have advanced 69% and 38% of their total capital/assets to the appellant as interest bearing loan, which forms substantial part of the business of the lending company - Held that:- The Tribunal was rightly of the view that the AO had correctly treated the advance or loan given to the assessee by two private limited companies as deemed dividend – assessee held more than 10% of the shareholding of two private limited companies, namely Kukki Color Photos Pvt. Ltd. and Kukki Color Prints Pvt. Ltd. - The assessee had received loans and advances from the two companies during the assessment year - neither of the companies lent any money to any entity, save and except to the assessee - The lending of money was not a part of the business of the Company, nor for that matter, could it constitute a substantial part of the business - there was no organized course of activity involving dealings with anyone else, save and except for the assessee - The assessee was unable to establish that the exclusion was attracted – thus, the order of the Tribunal is upheld, as such no substantial question of law arises for consideration – Decided against assessee.
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