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Section 2(22) of the Income-tax Act, 1961 - Deemed dividend - Assessment year 1998-99 - Assessee, engaged in business of travel agency, had entered into certain business transactions with two companies, namely, 'H' Ltd. and 'A' Ltd. - Assessing Officer took a view that because of shareholding pattern, financial transactions entered into between assessee and said companies would fall in category of 'deemed dividend' - Commissioner (Appeals) upheld order of Assessing Officer - On further appeal, Tribunal opined that being a travel agency, assessee had regular business dealings with above two concerns dealing with holiday resorts and tourism industry and, thus, transactions-in-question could not be described as advances or loans forming distinct category of financial transactions - Accordingly, Tribunal concluded that provisions of section 2(22)(e) were not at all applicable - Whether since assessee was involved in booking of resorts for customers of these companies and had entered into normal business transactions with companies as a part of its day-to-day business activities, Tribunal was right in holding that provisions of section 2(22)(e) were not applicable - Held, yes Mrs. P.L. Bansal for the Appellant. Prakash Kumar for the Respondent. ORDER 1. The revenue is aggrieved by an order dated 18-7-2008 passed by the Income-tax Appellate Tribunal, Delhi Bench "C", New Delhi (the 'Tribunal') in ITA No. 3090/Delhi/2003 relevant for the assessment year 1998-99. 2. The assessee is engaged in the business of a travel agency. During the previous year relevant to the assessment year the assessee had entered into certain business transactions with M/s. Holiday Resort (P.) Ltd. and M/s. Ambassador Tours (I) (P.) Ltd. As a result of these business transactions, there were some financial transactions but the Assessing Officer came to the conclusion that because of the shareholding pattern, these financial transactions would fall in the category of "deemed dividend" defined under section 2(22)( e) of the Income-tax Act, 1961. This view was upheld by the Commissioner of Income-tax (Appeals). 3.…

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