Two Imp Verdicts Of The ITAT

Preimus Investment And Finance Ltd vs. DCIT (ITAT Mumbai)

S. 37(1): Even if no business is carried, the expenditure incurred to maintain the corporate entity has to be allowed as a deduction
There is no doubt that the assessee is a corporate entity. Even if it is not carrying on any business activity it has to incur some expenditure to keep up its corporate entity. Therefore expenditure incurred by it has to be allowed
 

Ishwar Chand Jindal vs. ACIT (ITAT Delhi)

S. 2(22)(e): loans and advances given for business transaction between the parties does not fall within the definition of “deemed dividend”
Payments made by a company through a running account in discharge of its existing debts or against purchases or for availing services, such payments made in the ordinary course of business carried on by both the parties could not be treated as deemed dividend for the purpose of section 2(22)(e). The deeming provisions of law contained in section 2(22)(e) apply in such cases where the company pays to a related person an amount as advance or a loan as such and not in any other context. The law does not prohibit business transactions between related concerns, and, therefore, payments made in the ordinary course of business cannot be treated as loans and advances