https://www.taxtmi.com/caselaws?id=328114 The Tribunal ruled in favor of the assessee, holding that the transactions in the form of a current account did not constitute deemed dividend under section 2(22)(e) of the Income Tax Act. The Tribunal found the transactions to be mutual and commercial in nature, benefiting both parties, and not falling under the scope of deemed dividend. Citing legal precedents and the intention behind the provision, the Tribunal quashed the CIT's order under section 263, emphasizing that the provision aims to tax distributions of profits disguised as loans, which was not the case in this scenario. en-us Wed, 04 May 2016 00:00:00 +0530 Thu, 26 May 2016 08:18:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328114 The Tribunal ruled in favor of the assessee, holding that the transactions in the form of a current account did not constitute deemed dividend under section 2(22)(e) of the Income Tax Act. The Tribunal found the transactions to be mutual and commercial in nature, benefiting both parties, and not falling under the scope of deemed dividend. Citing legal precedents and the intention behind the provision, the Tribunal quashed the CIT's order under section 263, emphasizing that the provision aims to tax distributions of profits disguised as loans, which was not the case in this scenario. Case-Laws Income Tax Wed, 04 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328114