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2018 (10) TMI 57 - ITAT DELHIRevision u/s 263 - proceedings initiated by holding that Assessing Officer has not verified applicability of section 2 (22) (e) - deemed dividend addition - Held that:- Amount received by assessee from M/s AMQ Agro India Pvt. Ltd. does not amount to loans and advances and Provisions of Sec.2(22)(e) of the Act cannot be applied. In our considered opinion, the order passed by Ld.AO cannot be treated as erroneous. It is a settled law that S.263 proceedings can be upheld, if twin conditions of assessment order being erroneous, as well as prejudicial to the interest of Revenue, stands satisfied. In the present facts of the case assessee received share application money during the year under consideration and shares have been allotted during A.Y. 2014-15 to M/s AMQ Agro, therefore, in our considered opinion as Sec.2(22)(e) of the Act is not applicable to this transaction, the order passed by Ld.AO cannot be treated as erroneous, and therefore, order passed u/s 263 of the Act cannot be upheld. - Decided in favour of assessee
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