Deemed Dividend : New decision by Delhi High Court

[Harshavardhana Datar]

Advance in ordinary course of carrying on business cannot be considered as 'dividend' within meaning of section 2(22)(e) of IT Act, 1961



Once it is held that the business transactions do not fall within section 2(22)(e), one need not to go further to section 2(22)(e)(ii) to take away the basic meaning, intent and purport of the main part of section 2(22)(e)

CIT v. Creative Dyeing & Printing Pvt Ltd. ITA No. 250/2009 dated 22nd September 2009