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2017 (8) TMI 1186 - AT - Income TaxReopening of assessment - deemed dividend addition u/s 2(22)(e) - nature of receipt - advances against sale of land - percentage of shareholding - director of a company holding more than 10% of the shares, had during the year under consideration received an amount from the company - Held that:- The impugned ‘agreement to sell’ projected by the assessee to justify his claim that the amount of ₹ 17,50,000/- (supra) was received by him from the company in lieu of a transaction of an anticipated sale of land by him to the company, which however could not fructify on account of compulsory acquisition of the land by the government is merely an arrangement tailored by the assessee with the sole intent to wriggle out of the ramifications of having received the aforesaid amount from the company, which as per law was liable to be assessed as ‘deemed dividend’ u/s. 2(22)(e) in his hands. We find ourselves to be in absolute agreement with the observations of the CIT(A) that the claim raised by the assessee and the contentions raised in context thereto have serious loose ends which clearly militate against the basic principle of preponderance of human probabilities, and rather, as a matter of fact goes to prove to the hilt that the said claim of the assessee is the brain child of an afterthought, which was guided by an ulterior motive of avoiding assessing of the aforesaid amount as a ‘deemed dividend’ in the hands of the assessee. We find ourselves to be in agreement with the observations of the CIT(A), and are of the considered view that neither the contentions raised by the assessee before the lower authorities nor the ‘material’ available on record, supports the claim of the assessee that the amount of ₹ 17,50,000/- (supra) was received by him as an advance for an anticipated sale of land by him to the company. We thus in light of our aforesaid observations uphold the order of the CIT(A). - Decided against assessee.
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