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2018 (7) TMI 1545 - AT - Income TaxDeemed dividend addition u/s. 2(22)(e) - Held that:- The claim of the assessee is that the transaction entered into by the two Companies are the business transactions. It is stated that both the parties are engaged in similar trade and activities and the above amount was given as advance against business transaction. The above facts were also confirmed by the Audited Accounts by the parties and M/s Northern Strips Pvt. Ltd. is also providing goods transport services to M/s Super Plastic Coats Ltd. AO did not controvert the above submissions of the assessee by making the further enquiry. He has merely rejected the above claim of the assessee without further adducing any evidence. The CBDT in its Circular No. 19 of 2017 has clarified that trade and commercial transactions are not covered in the definition of loans and advances on which provision of Section 2(22)(e) of the Act can be applied. Following in the case of CIT vs. Pravin Bhimsi Chheda (2011 (5) TMI 857 - ITAT MUMBAI) and in view of the CBDT’s Circular (Supra), we are of the view that Ld. CIT(A) has dealt with the issue correctly - Decided against revenue
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