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2015 (8) TMI 119 - AT - Income TaxDeemed dividend under section 2(22)(e) - Held that:- The transactions between group companies are in the nature of current account transactions and cannot be regarded as deemed dividend. In this case, the admitted position is that there was opening balance of ₹ 4,33,000/- in the books of M/s. Magnum International of M/s. Courage Financial Services Pvt. Ltd. This opening balance of ₹ 4,33,000/- increased to ₹ 21,62,000/- on account of fresh amount of ₹ 17,29,000/- received during the instant year. Likewise in the audited balance sheet of M/s. B.R. Associates, there was opening balance of ₹ 36,52,000/- of M/s. Courage Financial Services Pvt. Ltd. which balance increased to ₹ 43,25,000/- at the close of the year on account of ₹ 7,00,000/- received during the year. Thus, apparently, these are transactions between group companies which are on year to year basis and therefore, the current account transactions and business transactions. We have already held above following the judgment of CIT vs. Arvind Kumar Jain [2011 (9) TMI 363 - DELHI HIGH COURT] that business transactions did not constitute deemed dividend under section 2(22)(e) of the Act Following the above findings, additions made for deemed dividend are deleted - Decided in favour of assessee. Unexplained cash credit under section 68 - Held that:- The ld. counsel in his arguments submitted that such surrender was never acted upon and no sum was offered for tax or assessed to tax on the basis of such said surrender given by Shri I. C. Jindal. A chart tabulating the various additions made in all the four companies has also been placed on record. It was contended that no addition has been made on the basis of surrender but on independent examination of the claim. He alternatively contended that such surrender in any case has no bearing on the advance received by the appellant. We find that there are no factual findings vis-à-vis the above submission of the appellant. We therefore direct that the issue regarding addition of ₹ 45,00,000/- be decided de-novo by the Assessing Officer after granting adequate opportunity of being heard to the appellant. - Decided in favour of assessee for statistical purposes.
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