TMI Blog2010 (10) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of CIT(A) dated 29.1.2010 for the AY 2004-05, in the matter of order passed u/s 147/143(3) of the IT Act. 2. In this case, assessee is aggrieved for addition of ₹ 27,90,906/- made by the AO u/s 2(22)(e) of the IT Act. 3. Rival contentions have been heard and record perused. Facts in brief are that the assessee, the proprietor of M/s Shashi International is also one of the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed the addition against which the assessee is in further appeal before us. 5. We have gone through the orders of the authorities below and found that assessee was having substantial interest in M/s Shashi International, therefore the amount of loan received was liable to be treated as deemed dividend within the meaning of Section 2(22)(e) of the Act. From the statement of account as placed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the meaning of Section 2(22)(e). Deeming provision should not be enlarged beyond the logical end. For example, if an assessee is regularly taking cheques of ₹ 2 lakhs at interval of 4-5 days and in the entire year he has taken 50 cheques of ₹ 2 lakhs which amount to ₹ 1 crore. But however, if the assessee has also repaid the amount before getting the next cheque, then maximum amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s deemed dividend. In the instant case, as per the statement of account placed on record, we found that assessee was in receipt of various cheques, some of cheques were received on account of expenditure which the assessee was to incur in the normal course of business for undertaking foreign travel for the purpose of business of the company. Thus, these amounts were attributable to the normal busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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