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2019 (10) TMI 385

..... been engaged in trading operations with each other. We also note that the substantial payment is coming over from the earlier year as opening and no disallowance was made by the Revenue qua the opening balance as deemed dividend in the earlier year. It was also stated before us that in the earlier year, the amount coming over from the earlier years was on account of trading operation only. Similarly, in the current year, we observe that major payments were made towards opening balances balance and thereafter against the various expenses and JV amounts payable. Under these circumstances, we are of the view that to hold the transactions of trading in nature entered into in the ordinary course of business as deemed dividend would be against th .....

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..... Ld.CIT(A) for fresh adjudication and thus, the Ld.CIT(A) vide order dt.05-02-2008, confirmed the addition u/s.2(22)(e) of the Act of an amount of ₹ 50,78,658/- in the hands of the assessee-company. Thereafter, the appeal was filed before the ITAT and the ITAT once again vide order dt.10-11-2010, restored the issue to the file of AO with certain directions to decide the issue by giving reasonable opportunity to the assessee. Now the AO has, after allowing opportunity to the assessee, framed the assessment u/s.143(3) r.w.s.254 of the Act vide order dt.22-10- 2012, again making the addition of ₹ 74,32,885/-. According to the Ld.AO, the said addition represented the deemed dividend, within the meaning of Section 2(22)(e) of the Act, .....

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..... sal of the order of Ld.CIT(A) and documents on record reveal that both the entities have been engaged in trading operations with each other. We also note that the substantial payment is coming over from the earlier year as opening and no disallowance was made by the Revenue qua the opening balance as deemed dividend in the earlier year. It was also stated before us that in the earlier year, the amount coming over from the earlier years was on account of trading operation only. Similarly, in the current year, we observe that major payments were made towards opening balances balance and thereafter against the various expenses and JV amounts payable. Under these circumstances, we are of the view that to hold the transactions of trading in natu .....

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