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2015 (8) TMI 82 - AT - Income TaxDeemed dividend under section 2(22)(e) - Payment for public issue RPL - IPO - HNIR - Held that:- The explanation of the assessee that the IPO of M/s RPL was applied by the assessee for and on behalf of M/s Germstar Constructions P Ltd is hard to believe. It is well established principle of law that mere repayment of money borrowed by the share holder will not escape him from the provisions of sec. 2(22)(e) of the Act. Hence the fact that the assessee has paid back the excess share application money refunded by M/s RPL will not be of any help to the assessee. Hence, we agree with the contentions of the revenue that the decision rendered in the case of Sunil Sethi (2008 (9) TMI 618 - ITAT DELHI) is not applicable to the facts prevailing in the instant case. Accordingly, we are of the view that the AO was justified in assessing the amount of ₹ 62.00 lakhs as deemed dividend in the hands of the assessee - Decided against assessee.
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