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2016 (2) TMI 38 - AT - Income TaxDeemed dividend u/s.2(22)(e) - contention of assessee that it was business advance - Held that:- e, the amount has been advanced as business advance, wherein the amount was advanced to a joint venture company for the purpose of purchasing machinery to carry on the business. The recipient company had purchased the machinery against the money so advanced and the assessee has also placed on record the trail of payments in this regard and in such facts and circumstances, where a business decision was taken between two concerns and the amount was advanced, such an advance cannot take the colour of loan simplicitor. Such a business transaction between two concerns, under which amount is transferred from one to another cannot be treated as dividend in the hands of shareholder by applying the deeming provisions of section 2(22)(e) of the Act. We find no merit in the order of CIT(A) in this regard and reversing the same, we direct the Assessing Officer to delete the addition - Decided in favour of assessee
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