Held, that CIT (A) was justified in deleting the additions as assessee and lender company were engaged in a similar line of business. Further, the lender had charged interest on the advances made to the assessee. The loan was for the business purpose and not individual benefit. (AY. 2011-12 to 2013-14)
ACIT v. Krishna Coil Cutters Pvt. Ltd. (2022)98 ITR 650 (Ahd) (Trib)
S. 2(22)(e) : Deemed dividend-Loan to Shareholder-Nature of business of company to lend money-Advanced money to assessee shareholder for exigency and charged interest-Loan not assessable as deemed dividend.