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2020 (10) TMI 255 - HC - Income TaxDeemed dividend u/s 2(22)(e) - whether AO was right in holding that the only exclusion provided by the Statute under Section 2(22)(e) was in the case of money lending business and the payments that are made in the ordinary course of business, as, for doing money lending business, a person is required to obtain a licence from the Reserve Bank of India or whether it is a non banking financial company? - HELD THAT:- As decided in M/S. T. ABDUL WAHID & CO.[2020 (9) TMI 977 - MADRAS HIGH COURT] Section 2(22)(e) provision would stand attracted when a payment is made by a company, in which public are not substantial interested by way of advance or loan to a share holder, being a person who is the beneficial owner of the shares. On facts, it is clear that the payment has been made to the assessee, a partnership firm. The partnership firm is not a share holder in the company. The records placed before the assessing officer clearly shows the nature of transaction between the firm and the company and it is neither a loan nor an advance, but a deferred liability. These factshave been noted by the assessing officer. In such circumstances, this Court is of the view that the Tribunal rightly reversed the order passed by the CIT(A) affirming the order of the assessing officer - Decided against revenue
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