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2018 (7) TMI 218 - AT - Income TaxDeemed dividend u/s. 2(22)(e) addition - assessee is a director/shareholder of the company BMPL having a running/current account with the company - Held that:- Running account or current account of the Director & shareholder of the company cannot be treated as loan or advance account. In this case, the perusal of the ledger account clearly shows that the assessee’s account with BMPL was a running/current account, containing both debit as well as credit entries. Credit balance arising in the said account on 09.11.2006, cannot be treated as deemed dividend in the hands of the assessee. See COMMISSIONER OF INCOME-TAX VERSUS IDHAYAM PUBLICATIONS LIMITED [2006 (1) TMI 97 - MADRAS HIGH COURT] We set aside the orders of the authorities below and delete the addition of deemed dividend - Decided in favour of assessee.
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