1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Loans for business advantage

ByCA Gopal Nathani

Sep 7, 2020

The Delhi High Court in CIT v. Creative Dyeing & Printing (P) Ltd. (2009) 184TAX483 held that the amount advanced for business transaction would not fall within the definition of the deemed dividend under section 2(22)(e). In this case it was found that the amount advanced did not bear the characteristics of loans and advances and rather the amount had been paid by the lender in its own business interest since such amount were to be used to finance expansion and modernisation of plant and machinery at that would indirectly benefit the lender company which obtained job work service from the receiving company.