Ordinary Business Transactions Exempt from Deemed Dividend U/S 2(22)(e): Allahabad HC

Kishori Lal Agrawal Vs CIT (Allahabad High Court) Allahabad High Court, in a significant ruling stemming from an appeal by assessee Kishori Lal Agrawal against a decision of the Income Tax Appellate Tribunal (ITAT), has remanded a crucial aspect of a deemed dividend case back to the Tribunal. The judgment, concerning Assessment Year 2007-08, provides clarity on the interpretation of Section 2(22)(e) of the Income Tax Act, 1961, particularly regarding loans given by companies in the “ordinary course of its business.” Case Background The genesis of the dispute lay in interest-bearing...