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2019 (9) TMI 1229 - ITAT INDORE
Addition u/s 2(22)(e) as deemed dividend - accumulated profit needs to be worked out on the date of such payment/advancement of loan - HELD THAT:- In case only a single amount has been advanced to the assessee, then we may have set aside the issue to the file of the Ld. A.O to work out the amount of accumulated profits as on the date of giving advance. However from perusal of the fund flow statement we find that the assessee company started receiving funds from AOPL from 2.4.2014 and thereafter almost on 50 more occasions the amount have been received and there is alleged investment in other companies as per the strategic investment plan. Therefore in case of the assessee it will not be practicable to compute the accumulated profits on 50 days during the year since at some point of time there may be addition to the accumulated profit and at some time there may be reduction in the accumulated profits. Therefore without giving a general finding for the adoption of accumulated profits as on date of payment, in the instant case since the first day of receiving the fund from AOPL is 2.4.2014, therefore only the opening balance of the accumulated profits as on 1.4.2014 at ₹ 38.76 crores should have been considered for computing the amount of deemed dividend as per the provisions of section 2(22)(e)
Disallowance of ROC expenses and stamp duty incurred for increase in share capital - HELD THAT:- Following the judgments BROOKE BOND INDIA LIMITED VERSUS COMMISSIONER OF INCOME-TAX [1997 (2) TMI 11 - SUPREME COURT] as mentioned above we are of the view that Ld. CIT(A) has rightly confirmed the disallowance of ROC fees incurred exclusively for increase in share capital.