https://www.taxtmi.com/caselaws?id=338571 The appeal against the addition of deemed dividend under section 2(22)(e) of the Income Tax Act, 1961 was allowed. The appellant, a director and principal shareholder, provided personal guarantees for company loans and temporary advances, leading to withdrawals for short-term cash needs. The Judicial Member found that these actions benefitted the company and were not deemed dividends. Relying on precedents, including a Calcutta High Court case, the addition was deleted as the guarantees were not considered gratuitous acts. The CIT(A)'s interpretation was overturned, emphasizing the beneficial nature of the guarantees. en-us Fri, 04 Nov 2016 00:00:00 +0530 Tue, 07 Feb 2017 15:25:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338571 The appeal against the addition of deemed dividend under section 2(22)(e) of the Income Tax Act, 1961 was allowed. The appellant, a director and principal shareholder, provided personal guarantees for company loans and temporary advances, leading to withdrawals for short-term cash needs. The Judicial Member found that these actions benefitted the company and were not deemed dividends. Relying on precedents, including a Calcutta High Court case, the addition was deleted as the guarantees were not considered gratuitous acts. The CIT(A)'s interpretation was overturned, emphasizing the beneficial nature of the guarantees. Case-Laws Income Tax Fri, 04 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338571