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2018 (9) TMI 61 - AT - Income TaxDeemed dividend u/s 2(22)(e) - sum received by the assessee from M/s Charu Home Products Pvt. Ltd. - Held that:- The Board circular and the line of reasoning adopted by the various honourable High Courts undoubtedly indicate that the trading transactions or advances would fall outside the mischief of sums that are to be treated as deemed dividends. To this extent, there can be no dispute. Whether amounts advanced by a company to assessee in which the public does not have any substantial shareholding or in which the public is not interested to a shareholder, to an entity or individual holding shares in excess of 10 per cent amounts to a trading transaction or falls within the aspect and, therefore, deemed commercial, there can be no deemed dividend income in the hands of the receiver of the sum. The revenue has to conduct a fact-based inquiry each time such contention is urged by the assessee. These facts were analyzed meticulously by the AO were completely overlooked by the ld CIT (A) who virtually negated findings recorded with respect to the applicability of section 2(22)(e) of the act. All indications were that the assessee used money for its own purposes as it did by advancing substantial amounts enjoying the profits of the company. - Decided in favour of revenue.
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