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2018 (12) TMI 627 - ITAT CHENNAIDeemed dividend u/s 2(22)(e) - assessee contended that accumulated profit was arising out of sale of its land and therefore it is a capital reserve which cannot be distributed as dividend - commercial exigencies - Held that:- It is abundantly clear that even if the company advancing loan has capital reserve, provisions of Section 2(22)(e) can be invoked. - Moreover the AR has not brought out any convincing materials / explanation before us to establish that the advance made by M/s. Tuticorin Power Company Ltd. to M/s. Aben Ventures Pvt. Ltd. was out of commercial exigencies. In this situation we do not find it necessary to interfere in the orders of the Ld. Revenue Authorities. Hence the appeal of the assessee is devoid of merits and the order of the Ld.AO is hereby confirmed on this issue. Addition u/s 68 - Held that:- Since the submission of the assessee was not backed with any concrete evidence, the Ld.AO added an amount of ₹ 10,91,34,125/- (Rs.11,65,43,082/- less income offered ₹ 74,08,957/-) as the income of the assessee by invoking the provisions of Section 68 of the Act. 9.1 On appeal, the Ld.CIT(A) also confirmed the order of the Ld.AO because even before her, the assessee had not explained the transaction with sufficient evidence.Even before us, the assessee has not furnished any materials to substantiate his claim. Therefore we do not find any reason to interfere with the orders of the Ld.Revenue Authorities. - Decided against assessee.
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