Where the amount was advanced due to the business exigencies as per agreement executed between the parties, it cannot be considered as deemed dividend

International Land Development (P) Ltd Vs ITO (ITAT Delhi)- The learned CIT(A) has vacated the demand with regard to payment made to Goldman Malls Pvt.Ltd. for the reason that the payments were made for business exigencies as well as Goldman Malls Pvt.Ltd. is not shareholder of the assessee company. We have perused the memorandum of understanding executed on 1.12.2006 between the assessee company and Goldman Malls Pvt.Ltd. placed at pages 255 to 260 of the paper book filed by the assessee. Under this agreement, the assessee had agreed to advance upto 5 crores to Goldman Malls Pvt.Ltd. to enabl...