6 December 2021


News

ITAT: Normal Business Advances Not in Nature of ‘Loan’ are Not Deemed Dividend - 21.01.2020

Income Tax Appellate Tribunal, Delhi has held that the transaction where advance is received in the normal course of business and which is not taken as a loan cannot be considered as Deemed Dividend. The Tribunal further observed that the advance received from the company by the Assessee is in the nature of trade advance against the booking of commercial place being built by the Assessee and cannot be considered as deemed dividend under section 2(22) (e) of the Income Tax Act, 1961.

Tags : Income Tax Appellate Tribunal Business Advances Deemed Dividend

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