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Deemed dividend addition cannot be made in the hands of payer of loan
Case Law Details
- Case Name
- ACIT Vs Four Star Constructions Pvt. Ltd. (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13
- Courts
- All ITAT, ITAT Delhi
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ACIT Vs Four Star Constructions Pvt. Ltd. (ITAT Delhi)
Suffice to say, the AO made addition of Rs. 2,89,34,949/- u/s 2(22)(e) of the Income Tax Act, 1961.
The undisputed fact before us is that the assessee has indeed paid to M/s. Sewa International Fashions Ltd. a related entity. Thus, the assessee is not a recipient but payer of the loan.
Hence, as per the provisions of Section 2(22)(e) of Income Tax Act, the assessee was not liable to tax.
When enquired by the Bench as to whether any action has been taken by the revenue in the case of M/s. Sewa International Fashions Ltd., it was submitted b...
