Current account transactions & commercial advances are outside Section 2(22)(e) purview

Bees Infracon Private Ltd. Vs ITO (ITAT Ahmedabad) Ahmedabad Tribunal allowed the appeal of Assessee by holding that loans advanced through current account for business purposes cannot be treated as deemed dividend u/s 2(22)(e). Assessee, a private limited company engaged in infrastructure development, had originally filed its return declaring ₹29.19 lakh which was assessed at ₹29.79 lakh u/s 143(3). Subsequently, AO reopened the assessment on the basis that Assessee held 10.71% shares in M/s Sunburg Tradelink Pvt. Ltd., which had advanced ₹4.25 crore to Assessee. Since Sunburg had accum...