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2015 (5) TMI 232 - HC - Income TaxRectification application u/s.154 - ITAT directing AO not to include the current profit to be part of accumulated profit while determining the amount of deemed dividend - Held that:- Considering the provisions of Section 2(22)(e) more particularly, Explanation 2 to Section 2(22)(e) of the Act, it cannot be said that the Tribunal has committed any error in directing the Assessing Officer not to include the current profit to be part of accumulated profit while determining the amount of deemed dividend under Section 2(22)(e) of the Act. While determining the amount of deemed dividend under Explanation 2 to Section 2(22)(e) of the Act, the current profit was not required to be included to be part of accumulated profit. As such, as observed by the learned Tribunal, the issue is already against the Revenue in the case of Associated Banking Corporation of Ind. Ltd. V/s. Commissioner of Income-Tax, Bombay reported in (1964 (10) TMI 7 - SUPREME Court ) by which, the view taken that the profit accrues when the books of account are closed. - Decided against the Revenue.
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