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2019 (10) TMI 448 - BOMBAY HIGH COURTReopening of assessment u/s 147 - deemed dividend addition u/s 2(22)(e) - HELD THAT:- In the previous year relevant to the AY- 2013- 14, M/s. D. P. Vora received a loan of ₹ 5.68 Crores from M/s. Touchstone. Therefore, the reasons in support states that, this loan is in the nature of deemed dividend, covered by Section 2(22)(e) of the Act. This issue was admittedly not considered earlier, as no scrutiny Assessment was done under Section 143(3) of the Act but only an Intimation under Section 143(1) of the Act was sent to the Petitioner.. Petitioner had in its objection pointed out that for the same Assessment Year i.e. Assessment Year 2013-14, the Revenue has sought to tax the some loan received from M/s. D.P. Vora from M/s. Touchstone under Section 2(22)(e) - Tribunal by an order dated 24th April, 2017 held that the amount received by M/s. D.P. Vora from M/s. Touchstone was in the nature of business transaction so as to meet its trading activities. Thus, not hit by Section 2(22)(e) of the Act. The reasons in support of the impugned notice seeks to tax the same transaction as deemed dividend. Prima facie, once it is held on fact that, the advance was on trading account, then no occasion to apply under Section 2(22)(e) of the Act, can arise, as held by the Delhi High Court in CIT v/s. Creative Dyeing and Printing P. Ltd. [2009 (9) TMI 43 - DELHI HIGH COURT].
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