Section 2(22), of the Income-tax Act, 1961 - Deemed dividend (Loans to shareholder)

IT: Where subsidiary company advanced money to assessee-company to meet their business liabilities, said amount could not be deemed dividend income of assessee-company
■■■
[2015] 53 taxmann.com 307 (Andhra Pradesh)
HIGH COURT OF ANDHRA PRADESH
Commissioner of Income-tax
v.
India Fruits Ltd.*
L. NARASIMHA REDDY AND CHALLA KODANDA RAM, JJ.
I.T.T.A. NO. 238 OF 2003†
OCTOBER  15, 2014
Section 2(22), of the Income-tax Act, 1961 - Deemed dividend (Loans to shareholder) - Assessment year 1993-94 - Whether where subsidiary company was advancing money to assessee company for purchase of raw material and to make payments to a company to meet their business liabilities, said amount could not be considered as deemed dividend income of assessee company within purview of section 2(22)(e) - Held, yes [Para 7][In favour of assessee]