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2021 (8) TMI 463 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - amount received from Brahmand System Private Limited -HELD THAT:- The undisputed fact is that vide agreement to sell dated 16.5.2003, entered into between the assessee and the company Brahmand System Private Limited, the assessee agreed to sell the property situated at Haryana to the said company and the sale consideration was fixed at a sum of ₹ 98 lakhs out of which Brahmand System Private Limited advance ₹ 78 lakhs as earnest money and part payment. There is no dispute in so far as this agreement is concerned. The observation of the Assessing Officer that the purpose of the advance or loan is immaterial is contrary to the CBDT Circular No. 19/2017 dated 12.06.2017 - thus we are of the considered view that the business transaction of ₹ 78 lakhs cannot be treated as deemed dividend u/s 2(22)(e) of the Act. We, accordingly, direct the Assessing Officer to delete the addition Addition on account of 5% of car expenses - HELD THAT:- This issue was not seriously contested by the ld. AR and, therefore, the same is dismissed.
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