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2015 (6) TMI 60 - AT - Income TaxDeemed dividend u/s.2(22)(e) - whether amounts were advanced by the company for its business purposes? - Held that:- It is not clear whether these fixed deposits were really made for business purposes of the company. If the lien on fixed deposit held in the name of the assessee was marked in favour of the bankers, it may clearly demonstrate that the amounts were advanced for company purpose to the assessee. In the absence of such material on record, we are not able to come to a definite conclusion that the company had advanced this money to the assessee only for its own business purposes. Further, a mere perusal of the ledger extracts of the accounts of the assessee company it was not clear as to why two ledger accounts were maintained in the name of the assessee for the Financial Year 2007-08. Mere reliance on legal proposition without furnishing the supporting material does not help the cause of the assessee. It only amounts to a bald claim. The minutes of meeting of the board of directors cannot be the sole basis for coming to any conclusion, more so, in the case of a closely-held company. Therefore, we deem it fit and proper to restore ground to the file of the AO to make fresh assessment. Benefit of indexation in respect of computation of capital gains arising out of development of property devolved - Held that:- CIT(A) correctly allowed the claim of the assessee placing reliance in the case of DCIT vs. Manjula J. Shah [2009 (10) TMI 646 - ITAT MUMBAI] also confirmed in [2011 (10) TMI 406 - BOMBAY HIGH COURT] wherein held when the legislature by introducing the deeming fiction seeks to tax the gains arising on transfer of a capital asset acquired under a gift or Will and the capital gains under Section 48 of the Act has to be computed by applying the deemed fiction, it is not possible to accept the contention of revenue that the fiction contained in Explanation 1(i)(b) to Section 2(42A) of the Act cannot be applied in determining the indexed cost of acquisition under Section 48 of the Act. - Decided against revenue.
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