CIT v. N.S. Narendra (2021) 282 Taxman 198 (Karn.)(HC)

S. 2(22)(e) : Deemed dividend-Commercial transaction-personal properties as collateral to bank borrowings-Amount received as advance for purchasing property-Not assessable as deemed dividend.

Dismissing the appeal of the revenue the Court held that the advance was not given to assessee merely because he was shareholder with substantial interest but because company had derived benefit from assessee as the assessee has given his  personal properties as collateral to bank borrowings. Advance received cannot be assessed as deemed dividend.   (AY. 2009-10)