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TMI Blog2021 (1) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany, therefore, within the meaning of sub-clause (3) of Section 2(22) this adjusted amount is to be excluded from the deemed dividend under sub-clause (e) of Section 2(22). A perusal of the impugned order of ld. First Appellate Authority would indicate that this aspect has not been considered by the ld. CIT(A). We find force in the contention of ld. counsel for the assessee and allow the appeal of the assessee. - ITA No. 1494/CHD/2019 (Assessment Year : 2012-13) - - - Dated:- 19-11-2020 - SHRI N.K.SAINI, VICE PRESIDENT AND SHRI RAJPAL YADAV, VICE PRESIDENT Assessee by: Shri Akshun Gupta, CA Revenue by: Shri Ashok Kumar Khanna, Addl. CIT ORDER PER RAJPAL YADAV, VP The assessee is in appeal before the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(iii) in the hands of the company for this advance. In other words, the AO sought to disallow interest expenses on this advance in the hands of the company. iv) The AO has overlooked the fact that actual amount of advance received during the year was adjusted in the following year against dividend and thus covered by Exception to Section 2(22)(e) and had ought to be not considered as deemed dividend. 5. Apart from the above proposition, the assessee has filed written submissions which has been extracted by the ld. First Appellate Authority in paragraph No. 6.2 of the impugned order. The assessee has tabulated the advance outstanding as on 31.03.2012 and demonstrated that only ₹ 3,07,230/- was actually taken during this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable. Therefore, he did not wish to argue on those issues. He straight away took us through sub-clause (3) of Section 2(22)(e) and contended that if any dividend is being paid by the company is set off by the company against whole or any part of any sum previously paid by it and treated as a dividend within the meaning of sub-clause (e) to the extent to which it is set off, then it will not include in the alleged deemed dividend. He, thereafter, took us through paragraph number 6.2.5 on page 5 of the CIT(A) s order and submitted that this advance requires to be exempted under sub-clause (iii) of Section 2(22). He read over this sub-para of the submissions made before the ld. First Appellate Authority. On the strength of the above, he su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax. In fact, exception (Hi) to section 2(22) is very clear in this regard. It states dividend does not include any dividend paid by a company which is set off by the company against the whole or any part of any sum previously paid by it and treated as dividend within the sub-clause (e), to the extent to which it is so set off. (6) In view of the above submission, it is prayed the impugned addition of ₹ 3198948/- may please be deleted. 12. On due consideration of the above facts that assessee though herself did not dispute about her shareholding more than 10% in M/s Saraswati Agro Chemicals (India) Pvt. Ltd., she has also not disputed that she took a loan of ₹ 3,07,230/- during this year and the CIT(A) has also conf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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