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2023 (8) TMI 516 - KARNATAKA HIGH COURTDeemed dividend u/s 2(22)(e) - loan and advances obtained from company - CIT(A) allowed assessee's appeal holding that assessee shareholder had given loan to the company and it cannot be taxed as deemed dividend - ITAT confirmed deletion of addition - HELD THAT:- It is not in dispute that the CIT(A) has recorded that assessee had advanced Rs.13.62 Lakhs to the company. It is also not in dispute that AO has noticed that assessee had withdrawn Rs.8.52 Crores. Thus, neither the order passed by the AO nor the CIT(A) nor the ITAT clearly show as to how much amount was advanced by the assessee and how much was repaid towards loan. In the absence of specific finding regarding repayment of loan, the amount drawn by assessee will have to be treated as dividend under Section 2(22)(e) of the Act. Thus we are of the opinion that assessee's claim that he had given loan to the company and received corresponding payment by the company towards repayment of loan has to be correctly determined. The ITAT is the last fact finding authority. We deem it appropriate to remand the matter to ITAT for re-consideration - Appeal of revenue allowed for statistical purposes.
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