2017 (2) TMI 284 - ITAT HYDERABAD - Income Tax

Head Note / Extract:
Deemed dividend u/s 2(22)(e) - Held that:- The assessee has advanced interest free loans to the company and it is only for a brief period of 34 days in the A.Y 2009-10 that there was a small amount of ₹ 3,34,000/- as on 03-04-2011 debit balance in favour of the assessee in the books of the company. Even if the assessee’s contentions about receiving the consideration towards development agreement is not acceptable, the decision of the Hon’ble Punjab & Haryana High Court in the case of CIT Vs Suraj Dev Dada [2014 (5) TMI 625 - PUNJAB & HARYANA HIGH COURT ] would apply to the facts of the case on hand. Therefore, respectfully following the same, we hold that this amount cannot brought to tax u/s 2(22)(e) of the Act in the hands of the assessee for both the assessment years.