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2015 (11) TMI 733 - AT - Income TaxDeemed dividend u/s 2(22)(e) - Held that:- For qualifying any loan or advance as deemed dividend, it must fulfill all the conditions of the section 2(22)(e) of the Act, on the date of such loan or advance received by that person. Therefore, in view of above, we hold that the loan/ advance obtained from the company by assessee till the date of sale of shares, when he ceased to be beneficial owner of shares not less than 10% of voting powers, was liable for the deemed dividend as per provisions of section 2(22)(e) of the Act and any loan or a advance received thereafter will not qualify as deemed dividend. The said share transfer form is filed in the office of the Registrar of Companies on 27.07.2007, so the date of transfer should be taken as 27.07.2007, however, the assessee in its submission has mentioned the date of share transfer deed as 30.07.2007, So even if we taken 30.07.2007 as date of transfer of shares, it does not make any material difference in present case. Thus finding of the AO and the ld CIT(A) as regards to considering the advance of ₹ 9.83 lakhs as deemed dividend , is not based on the correct appreciation of the law as well as facts and therefore, we hold that the loans/ advances given by the company to the assessee during the year under consideration till the date of sale of shares by the assessee, should only be considered for deemed dividend. Accordingly, we remit the matter back to the file of the AO and direct the AO to compute the loan/ advances given by the company till the date of sale of shares by the assessee as deemed dividend, subject the availability of accumulated profit of the company.- Decided in favour of assessee for statistical purposes. Addition against low house withdrawals - Held that:- The wife of the assessee as well as his father also contributed towards the household expenses, which increases the house hold withdrawal to ₹ 3,63,000/-. In our opinion, looking the family size of the assessee and living standard, the house hold withdrawals are sufficient and therefore addition made by the AO is deleted - Decided in favour of assessee.
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