https://www.taxtmi.com/caselaws?id=207427 The court dismissed the appeal, upholding the decision of the ITAT and CIT (A) to delete the addition of deemed dividend under Section 2(22)(e) of the Act. It was found that the amount received by the assessee from the company in which they held shares was not a loan but part of regular business transactions, supported by a running account. The court emphasized that payments resulting from business dealings, even to substantial shareholders, do not qualify as loans under the provision, aiming to prevent tax avoidance of accumulated profits distributed as loans by closely held companies. en-us Fri, 30 Sep 2011 00:00:00 +0530 Thu, 09 Apr 2026 11:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=207427 The court dismissed the appeal, upholding the decision of the ITAT and CIT (A) to delete the addition of deemed dividend under Section 2(22)(e) of the Act. It was found that the amount received by the assessee from the company in which they held shares was not a loan but part of regular business transactions, supported by a running account. The court emphasized that payments resulting from business dealings, even to substantial shareholders, do not qualify as loans under the provision, aiming to prevent tax avoidance of accumulated profits distributed as loans by closely held companies. Case-Laws Income Tax Fri, 30 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=207427