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2017 (8) TMI 489 - HC - Income TaxReopening of assessment - Deemed dividend u/s 2(22)(e) - Held that:- The petitioner has produced the audited accounts in the balancesheet which we have perused. The amount in question is shown as a demand to the said company. Loan is an advance made by the petitioner to the said company. The stand taken by the Assessing Officer in the reasons recorded that such sum was received by the petitioner from the company by way of a loan, is thus even otherwise not correct. We have therefore proceeded on such basis. If that be so, the reason for reopening the assessment completely lacked validity. The sole ground to reopen the assessment was that the loan received by the petitioner from private company should be treated as a deemed dividend in terms of section 2(22)(e) of the Act. When on facts the petitioner is able to show that the amount in question was advanced by the petitioner to the company and was not received by the company by way of a loan, section 2(22)(e) of the Act would have no applicability. - Decided in favour of assessee.
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