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2020 (8) TMI 467 - AT - Income TaxDeemed dividend u/s.2(22)(e) - Assessee has placed reliance on the decision in the case of Commissioner of Income Tax Vs. P. K. Badiani [1970 (2) TMI 3 - BOMBAY HIGH COURT] wherein held section 2(6A)(e) must be so interpreted that once an amount goes out of the " accumulated profits " as a loan and the loan is to be deemed to be dividend, the same amount when repaid cannot again be capable of attracting the fiction and be deemed to be dividend and avoid the happening of any such eventuality, the " accumulated profits " must be notionally reduced by the amount of all loans, etc., which are to be deemed to be dividends under the fiction under section 2(6A)(e) - HELD THAT:- This issue needs factual verification vis-a-vis the applicability of law as pronounced by the Hon’ble Jurisdictional High Court (supra.). Double taxation, in any case, is not warranted within the spirit and soul of the Income Tax Statute. Therefore, we set aside the order of the Ld. CIT(Appeals) and restore the matter back to the file of Assessing Officer directing him to consider the judgment of the Hon’ble Jurisdictional High Court (supra.) and analyze the same with the facts of the assessee’s case and adjudicate the issue in compliance with the principles of natural justice. Appeal of the assessee is allowed for statistical purposes.
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