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2023 (3) TMI 1102 - AT - Income TaxDeemed dividend u/s 2(22)(e) - assessee is a common shareholder having share in nature at 12.3% in one company and 50% in other - contention of the assessee that the transfer of fund was from and to the sister concerns on need basis for a few days and therefore, receipt and payment of the amount is only for short while depending upon the exigency of the business. HELD THAT:- The transaction interest between the sister concerns and the assessee cannot partake of the nature of either “deposit” or “loan” though interest might have been paid on the same. It only represents giving funds from one concern to another depending upon the exigencies of the business. The decision of Ankitech [2011 (5) TMI 325 - DELHI HIGH COURT] relied upon by the Revenue that the assessee entered into normal business transaction as a part of day to day business activity and is a loan / dividend income. The same will not be applicable in present assessee’s case. Therefore, the addition made by the AO and the confirmation made by the CIT(A) u/s 2(22)(e) cannot be termed as deemed dividend income and hence is deleted. Appeal of the assessee is allowed.
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