Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 487 - AT - Income TaxDeemed dividend u/s 2(22)(e) - loans taken by the assessee from M/s Bhambani Shipping Pvt. Ltd. whereas Mr. Hariram Bhambani is holding 90% shares of M/s Bhambani Shipping Pvt. Ltd. and 20% shares of the assessee company and whereas, M/s Bhambani Shipping Pvt. Ltd. had reserves and surplus of ₹ 2,53,87,248/- - CIT(A) deleted the addition - Held that:- In the instant case, the ld. CIT(A) recorded a categorical finding to the effect that the assessee is not a shareholder of M/s Bhambhani Shipping Pvt. Ltd., therefore, the amount received by the assessee is not liable to be taxed u/s 2(22)(e) of the Act. This finding of the ld. CIT(A) has not been controverted by the ld. D.R. by bringing any positive material on record. The ld. CIT(A) has relied on the decision of ITAT Special Bench in the case of ACIT vs. Bhaumik Colours Pvt. Ltd. [2008 (11) TMI 273 - ITAT BOMBAY-E ] wherein it was held that provisions of section 2(22)(e) can be applied only in the hands of the beneficial and registered shareholder of the company which has given loan. Respectfully following the decision of Hon’ble jurisdictional High Court and ITAT Special Bench, as discussed above we do not find any infirmity in the order of the ld. CIT(A) for deleting the addition made u/s 2(22)(e) of the Act. - Decided in favour of assessee. Disallowance of hiring charges u/s 40(i)(a) - CIT(A) deleted addition - Held that:- Since the amount was already paid and the taxes are paid by the recipient, in our opinion, the decision of the Special Bench in the case of Merilyn Shipping & Transports (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) is applicable and by following the decision of the ITAT, Mumbai Benches (supra) we hold that the Tax Authorities have wrongly invoked provisions of section 40(a)(ia) in the instant case. No infirmity in the order of the ld. CIT(A) deleting the disallowance u/s 40(a)(ia) of the Act. - Decided in favour of assessee.
|