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2015 (11) TMI 585 - AT - Income TaxDeemed dividend under section 2(22)(e) - whether payments made by the company to the assessee firm represent trade advance? - CIT(A) deleted the addition - Held that:- No infirmity in the order of the Commissioner of Income Tax (Appeals) in holding that transactions between the lender company and assessee firm are in the course of business and the amounts received by the assessee are only trade advances and thus provisions of section 2(22)(e) have no application. Further when the assessee is not a shareholder of the lender firm, provisions of section 2(22)(e) are not applicable in view of the Mumbai Special Bench decision in the case of ACIT Vs. Bhaumik Colour Pvt.Ltd (2008 (11) TMI 273 - ITAT BOMBAY-E ). In the circumstances, we uphold the order of the Commissioner of Income Tax (Appeals) and reject the grounds raised by the Revenue. - Decided in favour of assessee.
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