S.2(22)(e): Definitions‐ Dividend‐ Deemed dividend ‐ Trade advances to sister concern – Provisions of S. 2(22)(e) is not applicable

Provisions of section 2(22)(e) is not applicable to trade advances given to sister concern in which shareholders of assessee have substantial interest, therefore provision of section 194 cannot be applicable and assessee cannot be treated as assessee in default and levy of interest under section 201 (IA) was deleted .As the Commissioner (Appeals) has passed a reasoned order the matter was set aside. (AY 2005‐06 to 2006‐07) Jaypeem Granites (P.) Ltd. v. ITO (2012) 139 ITD 564 (Hyd.)(Trib.)