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2021 (8) TMI 440 - HC - Income TaxDeemed dividend addition u/s 2(22)(e) - CIT(A) deleted the addition of deemed dividend simply accepting the submissions made by the assessee - as per ITAT there is no evidence on record to show that this loan was to be utilized only for purpose of business of the company or in any other manner, these facts go to prove that these amounts were advanced as gratuitous loan to the shareholders and provisions of section 2(22)(e) are squarely applicable - HELD THAT:- When a loan is advanced by a company to a registered share holder and other conditions mentioned in Section 2(22)(e) of the Act having been satisfied, the amount of loan has to be treated as deemed dividend within the meaning of Section 2(22)(e) of the Act. Tribunal while recording the aforesaid finding and while reversing the finding recorded by the Commissioner of Income Tax (Appeals), has not taken into account the ledger report, certificates issued by a standard chartered bank, books entries as well as the provisions of the agreements dated 22.11.2005 and 24.12.2005. Since the issue with regard to applicability of Section 2(22)(e) of the Act requires factual adjudication, the order dated 12.08.2016 passed by the Tribunal is quashed and the matter is remitted to the Tribunal for decision afresh after taking into account the material available on record. It is therefore not necessary for us to answer the substantial questions of law.
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