Provisions of Deemed Dividend provisions not applicable to Advancement of Loan in Ordinary Course of Business

DCIT Vs Lalitkumar K. Jain (ITAT Pune) The issue in the present appeal relates to the applicability of section 2(22)(e) of the Act. The Assessing Officer brought to tax a sum of Rs.56,81,680/- being the amount of loan advanced by M/s. Kumar Urban Developers Ltd. to M/s. Shatrunjay Construction and Developers Pvt. Ltd.. The Assessing Officer was of the opinion that the provisions of section 2(22)(e) have application as the respondent-assessee is a common shareholders in both the companies holding more than 10% of the shares. Although, during the course of assessment proceedings, the respondent-...