Loan Between Holding & Subsidiary Due to Commercial Expediency is Outside Deemed Dividend Scope

DCIT Vs Merino Industries Ltd. (ITAT Kolkata) Loan transaction between holding and subsidiary out of commercial expediency outside scope of deemed dividend ITAT Kolkata held that loan transaction between holding and subsidiary company done in the normal course of business and out of business/ commercial expediency are outside the scope of deemed dividend. Accordingly, addition u/s. 2(22)(e) of the Income Tax Act not sustained. Facts- The assessee is a private limited company engaged in the business of manufacturing of laminates, panel products, furniture, potato flakes and also engaged in agro...