Payment made towards purchase of flat cannot be treated as deemed dividend

DCIT Vs Smt. Sriram Satyavathi (ITAT Visakhapatnam) The fact that the company M/s. Vijetha Constructions has taken the advances for sale of flats was substantiated by the registered sale agreements. The same cheque No. and the dates were mentioned in the promissory note and the sale deeds which fortifies the assessee’s contention that the promissory note was obtained as a security. From the balance sheet of assessee, it is observed that there was no such items of loan relating to M/s. Vijetha Constructions. The Ld. CIT(A) has perused the seized material and observed that the promissory note ...