https://www.taxtmi.com/caselaws?id=447866 The ITAT Cochin held that amounts owed by an assessee-director to a company where he held substantial interest would not automatically constitute deemed dividend under section 2(22)(e). The tribunal distinguished between genuine trade transactions and loans/advances, ruling that purchase of property from the real estate company by the director as a customer, with subsequent full payment, did not qualify as deemed dividend. However, direct fund transfers and retention of customer payments by the director were deemed taxable advances. The matter was remanded to the AO for fresh determination following prescribed guidelines, with the appeal allowed for statistical purposes. en-us Mon, 30 Oct 2023 00:00:00 +0530 Fri, 05 Jan 2024 15:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447866 The ITAT Cochin held that amounts owed by an assessee-director to a company where he held substantial interest would not automatically constitute deemed dividend under section 2(22)(e). The tribunal distinguished between genuine trade transactions and loans/advances, ruling that purchase of property from the real estate company by the director as a customer, with subsequent full payment, did not qualify as deemed dividend. However, direct fund transfers and retention of customer payments by the director were deemed taxable advances. The matter was remanded to the AO for fresh determination following prescribed guidelines, with the appeal allowed for statistical purposes. Case-Laws Income Tax Mon, 30 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447866