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2020 (5) TMI 578 - ITAT DELHIDeemed dividend u//s 2(22)(e) - assessee to be in default u/s 201/201(1A) - HELD THAT:- The assessee company had advanced the loan to its associated concern M/s. Arihant Agencies which was then transferred to the account of Sh.Dinesh Kumar Jain and the fund was transferred back to the assessee company on the same day as Director’s share capital. We find that the issue of deemed dividend u/s 2(22)(e) of the Act in respect of similar transaction being made wherein the transaction of receipt and payment were on the same date itself by both the parties, arose before the Tribunal in series of cases i.e. Seema Devi Bansal i[2018 (7) TMI 1545 - ITAT DELHI] relating to Assessment Year 2010-11 and Sh. Harish Kanwar [2017 (10) TMI 997 - ITAT DELHI] relating to Assessment Year 2011-12. We have also decided similar issue in Surbhi Jain vs ITO [2020 (5) TMI 533 - ITAT DELHI] relating to Assessment Year 2011-12, applying the ratio laid down by Hon’ble Bombay High Court in Praveen Bhimsi Chheda Shivsadan vs DCIT [2011 (5) TMI 857 - ITAT MUMBAI] held that under similar circumstances, it was not case of deemed dividend u/s 2(22)(e) of the Act. Applying the said parity of reasoning and we hold that the assessee cannot held to be in default u/s 2(22)(e) of the Act and there is no merit in raising the demand u/s 201(1) and charging interest u/s 201(1A). Penalty u/s 271C for the aforesaid default u/s 201(1) - HELD THAT:- Since we have already deleted the demand raised u/s 201(1) there is no merit in levy of penalty u/s 271(1)(c) and the same is deleted. Grounds of appeal raised by assessee are thus allowed. - Decided in favour of assessee.
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