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2016 (5) TMI 542 - AT - Income TaxDeemed dividend addition u/s 2(22((e) - Held that:- The Assessing officer has invoked section 2(22)(e) only because the account contain transactions of payment and repayment between the said Company OIL and firms OC and OBA. Further, he has nowhere ascertained that the payment received and the payments made are towards payment by way of loans or advances. Therefore, simply because there were transactions of cheques received and cheques paid in the mutual, open, current, running account with the sister concerns, the same cannot be considered as payment by way of loans or advances so as to attract provisions of section 2(22)(e) as held in the case of Schutz Dishman Bio-tech Pvt Ltd (2016 (1) TMI 84 - GUJARAT HIGH COURT ). Similar transactions have been made in earlier year also but never in past the same has been considered to be transaction attracting section 2(22)(e). Therefore, in view of the binding decision in the case of Schutiz Dishman Bio-tech Pvt Ltd (supra), the transactions is required to be held in the nature of mutual current accommodation entries and therefore outside the purview of provisions of Section 2(22)(e) of the Act. - Decided against revenue
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