Tribunal held that the advances were given for business purposes, and the provisions of section 2(22)(e) were not attracted in the case of the assessee. Further in order to tax the receipt, it had to be proved that the amounts received could have been distributed as dividend by the lending company.( AY.2012-13)
Dy.CIT v. International Land and Developers P. Ltd. (2020) 79 ITR 441 ( Delhi) (Trib)
S. 2(22)(e):Dividend – Deemed dividend-Advances given for business purpose — Not assessable as deemed dividend