Dismissing the appeal of the revenue the Court held that the transaction was business transaction and interest corporate deposit was accepted as genuine by the AO in the case of lender concern by the same AO. Interest was also offered as income . Deletion of addition as deemed dividend is held to be justified .( AY.2004 -05)
CIT v. Basant Poddar ( 2019) 412 ITR 529/ 173 DTR 368 / 307 CTR 341 ( 2020) 116 taxmann.com 799( Karn) (HC)
S.2(22)(e): Deemed dividend – Intercorporate deposit -Business transactions -Deposit in the course of business- Interest income was offered as income – Not assessable as deemed dividend.