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2022 (11) TMI 309 - AT - Income TaxRevision u/s 263 - Deemed dividend u/s 2(22)(e) - only contention is that excess receipt by the assessee on each date is to be calculated by including the opening excess receipt and every such excess receipt so arrived at is to be treated as independent receipt from the said company and thus treated as deemed dividend u/s 2(22)(e) - whether peak excess receipt, considered by the AO for the purpose, is incorrect ? - HELD THAT:- No merit in this contention of the CIT. The account of the assessee with Tristar Security Pvt. Ltd., wherein the impugned amounts have been received, is undisputedly in the nature of a current account with numerous transactions of giving and receiving amounts to the said company. This is a fact on record and is not disputed. The assessee had explained the nature of transactions between the two as relating to lending and receiving back money from the said company by the assessee to help it tide over short term financial requirements.This explanation of the assessee is reproduced of the Ld.PCIT’s order. No infirmity has been pointed out by the PCIT in the same. Considering the fact that the transactions of the assessee with the said company are in the nature of current account transactions with repeated receipt and payment to the said company, the loans are repeatedly being paid back by the assessee within a few days itself and therefore it is only the peak credit which is to be considered for determining the amount advanced to the assessee qualifying as deemed dividend. There is no error, we hold, in the order of the AO treating only the peak withdrawal as deemed dividend. We therefore set aside the order of the Ld.Pr.CIT passed under section 263 - Appeal of the assessee is allowed.
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