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2008 (8) TMI 908 - HC - Income TaxDeemed dividend addition u/s 2(22)(e) - Whether the Tribunal was right in holding that out of ₹ 15 lakhs undisclosed income admitted by the assessee, to have received from another person, only ₹ 10 lakhs had to be treated as undisclosed income of the assessee when said transaction was not reflected in the books of account of the assessee ? - HELD THAT:- On persual of Tribunal's order, it is clear that the Tribunal has given a categorical finding for deleting the addition of ₹ 5 lakhs i.e., only ₹ 10 lakhs has been seized from the business premises of the assessee and also mere statement that ₹ 15 lakhs were received from one Senthil, which had been found true by the AO and further, the said sum was not even recorded in the books of Senthil. It is the question of fact and it is not a perverse order and the reasoning given by the Tribunal is based on valid materials and we do not find any illegality in the order of the Tribunal. Therefore, the order passed by the Tribunal is confirmed. Whether the Tribunal was right in holding that the interest free amounts received and returned by the assessee to the company in which she is a director, cannot be treated as deemed dividend u/s. 2(22)(e) in the hands of the assessee? - Here also the Tribunal has given a categorical finding that the amount was given only in the course of the business and also the said amount was returned subsequently. The sale transaction did not materialise and hence, the amount was returned. It is the question of fact and we find no error or illegality in the order of the Tribunal and the same is confirmed. It is also further brought to our notice the recent circular issued by the Central Board, in Instruction No. 5 of 2008, dt. 15th May, 2008, prescribes the conditions for filing appeal to the Tribunal, High Court and Supreme Court - The tax effect in each tax case is less than ₹ 4 lakhs and also there is no dispute regarding the same. The said appeals are also filed after 15th May, 2008. Therefore, considering the same, the appeals filed by the Department are not maintainable in view of the circular. In these circumstances, we are of the view that the above tax case appeals are dismissed on merits as well as jurisdiction.
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