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2021 (9) TMI 804 - AT - Income TaxDeemed dividend u/s.2(22)(e) - immovable property was purchased in the joint name of assessee and Mr. Pijush Kanti Pal - As per AO legal title of the land in question for taking the view that the payment for purchase of land by M/s. SDCPL, in which the assessee is a director, was indirect way of paying the consideration on behalf of its director - HELD THAT:- Payment of purchase of property was made by the said company through banking channel. The assessee has not shown his share of property in his individual balance sheet, Land & Building(KCT) Ledger Account in the books of M/s. SDCPL showing all the details of payments made to acquire the said property. The company, M/s. SDCPL has duly disclosed the land in question in its audited balance sheet appearing in the fixed asset chart at Schedule 10, forming part of the total asset valued at ₹ 316,424,615/-. We find that the land in question has been duly disclosed in the subsequent balance sheets for the F.Ys 2014-15 to 2018-19. There is no iota of evidence that company, M/s.SDCPL has given loan/advance to the assessee and the transaction of purchase of property is purely for the benefit of the company’s business and is for commercial expediency. Since there is no loan/advance given to the assessee from the said company and the alleged transaction is for company’s own business and commercial expediency, there was no reason to invoke the provisions of section 2(22)( e). In the instant case since no land/advance was given to the assessee from the said company, in which the assessee is a director and, therefore, the ld.AO erred in invoking the provisions of section 2(22)(e) - Decided in favour of assessee.
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