Allowing the appeal of the assessee the Court held that the advance amount paid was to be adjusted towards sale consideration of property which was to be transferred to DTDC as and when sale deed was to be executed. Since ground floor of said premises was purchased by company, entire sum paid as advance could not be treated as dividend. Matter was remanded to Tribunal for reconsideration. (AY. 1995-96)
Rinku Chakraborthy (Smt.) v. Dy. CIT (2023) 292 Taxman 353 (Karn.)(HC)
S. 2(22)(e) : Deemed dividend-Advances to directors-Joint owner of property-Advance to be adjusted for sale consideration-Matter remanded to the Tribunal for reconsideration. [S. 254(1)]