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2018 (3) TMI 524 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - Held that:- In this case, the assessee has taken a loan from the company for construction of house. The assessee had mortgaged his properties for availing credit limits by the company and dried up his resources for getting financial assistance from the banks. Therefore, he had no option except to take the loan from the assessee company or to get released the properties mortgaged to the Bank. Since the properties cannot be released unless the credit limits are completely repaid, he has taken the advance from assessee company for construction of his house and the entire amount of advance was repaid along with interest as evidenced from the order of the Ld. CIT(A). This Tribunal in the case of DCIT Central Circle-1 Visakhapatnam Vs. Sri Hariprasad Bhararia [2016 (11) TMI 1296 - ITAT VISAKHAPATNAM] held that the transaction between the assessee and the company are not within the meaning of loans and advances as defined u/s 2(22)(e) of the Act and accordingly, deleted the addition made towards deemed dividend under the provisions of section 2(22)(e) of the Act. We hold that the transaction is not deemed dividend within the meaning of section 2(22)(e) of the Act and accordingly, delete the addition made by the A.O. - Decided in favour of assessee
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