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Income tax case

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(Querist)
13 March 2013 MR. X Is Share Holder In XYZ Pvt. Ltd. & there Holding Is 30% & he is Also Partner in a Partnership Firm upto 50% Company gives Advance of Rs 150000 to Such Partnership Firm For The Purchase of Raw Material.
A.O. Make An Assessment & taxed it U/S 2 (22) (e) Deemed Dividend

Please Suggest me Relevant Case law against such assessment
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CA ROSHAN TIWARI

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CA ROSHAN TIWARI (Expert)
13 March 2013 IT HAS BEEN HELD BY RAJASTHAN HIGH COURT IN RE CIT V RAJ KUMAR 2009 23 DTR DELHI 304.

IF THE ADVANCE AMOUNT IS NOT REPAYABLE, IT CANNOT BE TERMED AS LOAN AND CANNOT BE TAXED AS DEEMED DIVIDEND.
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
13 March 2013 Trade advance for purchases is not a deemed dividend.
Raj Kumar's case reported in 181 Taxman 155 can be relied. It is a Delhi high Court decision.
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