Case Law Details
Brief of the Case
ITAT Kolkata held in case of ITO v Smt. Gayatri Chakroborty that where the transactions are mutual in nature or there is benefit or no benefit to each other, then these kind of transactions will not come under the purview of section 2(22)(e).
Facts of the Case
The Assessee is a director in a company having 25.24% shares. There were transactions between the Assessee and company of giving money to each other. The AO only noted one sided transaction where money was given from Company to Assessee and was of the view that the same was “Loan or Advance” within the meaning of Sec.2(22)(e) of the Act. The AO treated the transactions as in the nature of “Loan or Advance” within the meaning of Sec.2(22)(e) of the Act. The AO however treated some amount as deemed dividend and brought the said sum to tax in the hands of the Assessee.
Order of the ld. CIT(A)
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