The Tribunal held that no funds of the company were divested, there existed a current account which kept fluctuating according to the requirement of funds that arose in the ordinary course of business, which could not be treated as dividend income under section 2(22)(e). The assessee had filed all details of both the accounts she had with i.e. the loan account and trade account, which were examined by the Joint Commissioner as well as the Commissioner (Appeals). The addition was deleted. (AY.2013-14)
Kankuben Karshanbhai Tejani (Smt.) v. Dy. CIT (2022) 98 ITR 702 //(2023) 198 ITD 304 (Surat) (Trib.)
S. 2(22)(e) : Deemed dividend-Loan to shareholder-Loan made in ordinary course-Separate loan account and trade account of assessee-Loan cannot be treated as deemed dividend at the hands of assessee.