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2018 (8) TMI 1251 - AT - Income TaxExemption u/s 10AA - primary conditions of eligibility - continuation of the old business - Held that:- assessee has established an independent unit in the SEZ at Andheri to carry out manufacture and export of plain and studded golden and silver jewellery and started commercial production from A.Y. 2006-07 onwards. - AO was incorrect in denying the benefit of deduction claimed under Section 10AA of the Act. - Decided against the revenue. Deemed dividend - additions u/s. 2(22)(e) r.w.s. 56 - loans and advances received from the two lender companies - It is the claim of the assessee that the loans and advances received from the above two companies are normal business transactions in the nature of intercorporte loans and hence the AO was erred in applying the provisions of Section 2(22)(e) - Held that:- In this case the undisputed fact is that common shareholders having substantial share holding in assessee company as well as lender companies. Therefore we are of the view that the loans and advances received by the assessee from the two companies comes within the ambit of provisions of Section 2(22)(e) of the Act. - Additions confirmed - Decided in favor of revenue.
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