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2019 (7) TMI 287 - AT - Income TaxRevision u/s 263 - lack of enquiry - receipt of unsecured loan from group companies - applicability of section 2(22)(e) - Deemed dividend - HELD THAT:- AO is not only expected to be aware of such legal position but is also duty-bound to apply the same while completing the assessments, especially when it is propounded by the Hon’ble Jurisdictional High Court. In the present case, the AO thus had not only made the enquiry or verification as required in the facts of the case to ascertain the applicability of section 2(22) (e) to the loan amounts received by the assessee from the other group companies, but a conscious decision was also taken by him keeping in view the legal position that section 2(22)(e) was not applicable to the loan amounts in question received by the assessee during the years under consideration from the other Group Companies. There was thus no error in the orders of the AO for the years under consideration passed under section 153A/143(3) as alleged by the Principal CIT and the revision of the same under section 263 by the Principal CIT was not called for. In that view of the matter, we set aside the impugned orders passed by the Principal CIT u/s 263 and restore that of the AO passed under section 153A/143(3). - Decided in favour of assessee.
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