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2015 (5) TMI 717 - AT - Income TaxAddition on account of deemed dividend u/s 2(22)(e) - Held that:- After going through the provision of section 2(22)(e) and conditions thereof, we are of the considered view that the a provisions makes it clear that deemed dividend is to be brought to tax in the hands of the recipient company and not in the hands of the entity granting the loan. Under the facts and circumstances of the present case, we find that the Company had not received any loans from any of the persons falling within the ambit of sec 2(22)(e) of the Income-Tax Act, 1961 and accordingly the addition in dispute is not sustainable in the eyes of law. Therefore, we delete the addition in dispute made by the AO and confirmed by the Ld. CIT(A) - Decided in favour of assesse. Unaccounted cash credit - Held that:- The overall circumstances clearly indicate that the Bank A/c of the parties have only been utilized for justifying the loan of the assessee. Considering the specific direction of the ITAT for examining the credit worthiness of the parties, the A.R of the assesse has not provided any detail like Balance Sheet, regular source of income or the reason why such huge amount of loan was given, in some cases, interest free also. Thus find considerable force in the finding of the Ld. CIT(A) that assessee has not discharged the onus of establishing the creditworthiness of the parties. Accordingly, Ld. CIT(A), has rightly dismissed this ground of the assesse - Decided against assesse.
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