https://www.taxtmi.com/caselaws?id=76961 The HC upheld the Tribunal's view and reversed the AO's addition: the Rs. 32,00,000 transfer from the company was found to be defalcation, not a loan or advance, and thus was not taxable as a deemed dividend in the assessee's hands under s.2(22)(e). The court noted the amount was not reflected in the assessee's books and had been treated as a business loss; even if treated as dividend, taxation would lie with the shareholder, not the assessee. en-us Mon, 22 Mar 2010 00:00:00 +0530 Fri, 31 Jul 2026 10:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76961 The HC upheld the Tribunal's view and reversed the AO's addition: the Rs. 32,00,000 transfer from the company was found to be defalcation, not a loan or advance, and thus was not taxable as a deemed dividend in the assessee's hands under s.2(22)(e). The court noted the amount was not reflected in the assessee's books and had been treated as a business loss; even if treated as dividend, taxation would lie with the shareholder, not the assessee. Case-Laws Income Tax Mon, 22 Mar 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76961