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2016 (3) TMI 649 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - Held that:- We find from the record that assessee derives salary income from M/s. Gad Fashions (India) Pvt. Ltd. and remuneration interest income from M/s. Gad Fashions (India) Pvt. Ltd. and M/s. R. Fashions. The transaction is not in the nature of loan or advance but it is only a reimbursement of amount paid by the assessee to M/s. Manpasnd Textile Processors (P) Ltd. on behalf of M/s. Gad Fashions (India) (P) Ltd. It is further observed that the amount of ₹ 20.00 lacs so received by the assessee from M/s. Gad Fashions India Pvt. Ltd. was with reference to the advance given by the assessee to M/s. Manpasad Textile Processors (P) Ltd. considering the business interest. It is further observed that the transaction between assessee and M/s. Gad Fashions India Pvt. Ltd. is a mutual, open, current and running account which is not a loan or advance as envisaged u/s 2(22)(e). In view of the above facts and circumstances of the, case the orders of the lower authorities are reversed and Ground No. 1 of the assessee is allowed. We find from the record that when transaction between M/s. GAD Fashions India Pvt. Ltd. and M/s. Ecotune India Ltd. is not in the nature of loan or advance as envisaged u/s 2(22)(e) of the Act then it does not arise to make any further addition in the hands of the assessee. - Decided in favour of assessee
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