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2017 (2) TMI 271 - AT - Income TaxDeemed Dividend addition u/s 2(22)(e) - Held that:- Assessee is also a director in the said company M/s Prescomec Autocomp Pvt.Ltd. and is also a principal shareholder. The assessee has a running account with the company in which the amount contributed by the assessee is added and the amount drawn by the assessee is reduced. During the year on 27.04.2006, 22.05.2006 and 10.06.2006 the assessee withdrew amounts of ₹ 5,00,000/-, ₹ 10,00,000/- and ₹ 10,00,000/- respectively which led to a creation of a debit balance in the company amounting to ₹ 11,55,936.84. The assessee has given personal Guarantee for availing of the working capital loan by M/s Prescomec Auto Co.Pvt. ltd. where the assessee is a Director and in terms of the aforesaid Resolution the Directors in lieu thereof the assessee too has been permitted to make temporary drawings of advances to the maximum limit of ₹ 50 lakhs. It is seen that there is no change in facts and circumstances of the case. No distinguishing fact or circumstance has been canvassed by the Revenue to take a contrary view. In the absence of any distinction on facts or law respectfully following the order of the ITAT, the appeal of the assessee is allowed.
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