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2019 (4) TMI 345 - AT - Income TaxAddition of deemed dividend U/s 2(22)(e) - amount shown as alleged advance to the assessee in different Companies - HELD THAT:- Since in the present case advances have been made admittedly to tide over short term deficiency in the cash credit limits, usage of funds for the purpose of business of the said concern, which admittedly are all interrelated, is established. And since the goodwill of the entire group rests on the proper functioning of all the companies in the group, which in turn affects the business of the all companies in the group also, the impugned advances, we unhesitatingly hold, are for the purpose of business only and not in the nature of loans and advances simpliciter benefiting any substantial or beneficial shareholder only. The impugned advances in the present case amounting to ₹ 69,998/- do not qualify as loans and advances for the purpose of treating them as deemed dividend as per the provisions of section 2(22)(e). Addition of deemed dividend U/s 2(22)(e) for advances given to Swami Devi Dayal Hi-tech Education Academy - charitable trust registered u/s 12AA - HELD THAT:- following decision in SH. ROSHAN LAL JINDAL VERSUS THE D.C.I.T. [2017 (9) TMI 1098 - ITAT CHANDIGARH] we uphold the order of the CIT(A) deleting the addition made u/s 2(22)(e) on account of advances made to societies registered u/s 12A. Addition on account of provision 40(a)(ia) - brand was registered in the name of M/s Heera Moti Spices Pvt. Ltd. who was charging 4.1% royalty on the total turnover since no TDS was deducted - HELD THAT:- We restore the issue back to the A.O. to verify the documents filed by the assessee proving that the taxes have been paid by the recipient of brand charges and thereafter to decide the issue in accordance with law. We may add that the assessee be given due opportunity of hearing in this regard. The ground of appeal allowed for statistical purposes. Addition made on account of a seized document - cash transactions of receipts and payment undertaken by the assessee, which in the absence of any plausible explanation available were surrendered by the assessee to the extent of peak credit but were treated entirely as unexplained and the entire receipts added to the income of the assessee - additional evidences produced during assessment proceedings - HELD THAT:- We consider it fit to restore this issue back to the A.O. to adjudicate it afresh after considering and verifying the additional evidences filed by the assessee. We may add that the assessee be given due opportunity of hearing in this regard.
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