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2019 (3) TMI 746 - HC - Income TaxDeemed dividend addition u/s 2(22)(e) - nature of the transaction for refund of the advance amounts received by the assessee from the vendee company of which, he was a director - CIT(A) was satisfied with the explanation and held that the amounts could not be brought to tax under Section 2(22)(e) - ITAT agreed with the view of the AO and set aside the CIT(A) orders HELD THAT:- ITAT elaborately noted the sequence of events as well as the nature of the documents presented during the course of proceedings. It also noticed that according to the prevailing law, the general approach of the Revenue is to exclude a genuine commercial transaction. from the purview of Section 2(22)(e). Having regard to the overall circumstances of the case the ITAT disbelieved the assessee’s explanation concluded it is apparent that Agreement to Sell dated 8/6/2009 and cancellation of such deed by Agreement dated 1/8/2009 for the purchase of property is merely cover up and a camouflage for giving loan to the assessee by the above Company to avoid contravention of the provision of Section 2(22)(e). Assessee also failed to give the adequate evidence and cogent, reliable, and credible evidences about the transaction. CIT(A) has completely brushed aside finding of the A.O. in remand report and the statement of the assessee and further has not applied his mind to find out the true nature of the transaction. This Court is of the opinion that the ITAT’s decision is based upon an independent analysis of the facts. No doubt it differed from the CIT(A)’s view. At the same time all its findings are based upon appreciation of material facts. Its conclusion are a possible view that can be taken by the Tribunal based upon the circumstances. - Decided against assessee.
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