Dismissing the appeals of the revenue the Court held that ,the records placed before the Assessing Officer showed the nature of transaction between the assessee and the company. It was neither a loan nor an advance, but a deferred liability. The payment had been made to the assessee, a firm, which was not a shareholder in the company. These facts had been noted by the Assessing Officer. The Tribunal rightly reversed the order passed by the Commissioner (Appeals) affirming the order of the Assessing Officer.( AY.2012-13, 2014-15)
CIT v. T. Abdul Wahid and Co. (2020) 428 ITR 456/ 275 Taxman 101/ 119 taxmann.com 497/ ( 2021 ) 199 DTR 515 (Mad) (HC)
S. 2(22)(e):Dividend – Reassessment – Deemed dividend-Deferred liability —Not Shareholder of lender company — Loan not assessable as deemed dividend [ S.147 , 148 ]