Tribunal held that money lending was substantial part of business of both lender companies, therefore, proviso (ii) to section 2(22)(e) would apply. Accordingly addition cannot be made as deemed dividend. (AY. 2015-16)
Mohan Bhagwatprasad Agrawal v. ACIT (2019) 176 ITD 735 (Ahd.)(Trib.)
S. 2(22)(e) : Deemed dividend- Loans to shareholder – Business of money lending – loan from two companies which were substantially involved in business of money lending- Addition cannot be made as deemed dividend. [S. 2(22)(e)(ii)]