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2015 (10) TMI 1605 - AT - Income TaxDeemed dividend addition u/s.2(22)(e) - Held that:- The assessee has filed a paperbook on record which reveals that he gets a monthly salary of ₹ 50,000/- and also tractor rental income of ₹ 1,01,000/- in May-2005 and ₹ 1,40,000/- from June-2005 upto March-2006. It is further seen that the assessee has also received Qualish car rental income of ₹ 1,44,000/-. His books record tractor rental income as ₹ 15,01,000/-. The Revenue does not dispute the assessee's fixed assets in the shape of aforesaid vehicles. We find value of its tractor-trolly to be ₹ 37,45,500/- and Qualish Car that of ₹ 3,98,496/-. The assessee's books nowhere treat the sums received as loans and advances to have been received from the aforesaid company. The company's report does not disclose any such loan or advance to the assessee. The authorities below nowhere observe anything about accumulated profits so as to invoke section 2(22)(e) of the Act. We reiterate that this section stipulates addition of a deemed income statute liable to be strictly interpreted. The case file indicates that the impugned sums are routine business transactions/salary payments made between the company and the assessee-appellant not coming within the purview of deemed dividends u/s. 2(22)(e) of the Act. The assessee has filed a catena of case-laws. See DCIT vs. Chariot International Pvt.Ltd. [2013 (12) TMI 596 - ITAT BANGALORE] holding that routine commercial transactions involving trade advances are not to be treated as deemed dividends. The Revenue fails to point out any distinction on facts or law. We accept the assessee's arguments in these facts. The impugned addition of deemed dividends is deleted. - Decided in favour of assessee.
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