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2016 (6) TMI 1328 - AT - Income TaxAddition in respect of rented property - ALV determination - Assessee has let out these properties to one of the company where assessee has made some investment - Held that:- As perused the order of the Hon’ble Delhi high court – full bench [2011 (3) TMI 497 - DELHI HIGH COURT] dealing with the identical issue with respect to the same properties where issues have been decided by the Hon’ble high court in favour of the assessee. Therefore respectfully following the decision of the Hon’ble high court we decide ground No. 1 in favour of the assessee reversing the order of the lower authorities deleting addition made in respect of rented properties Deemed dividend addition u/s 2(22)(e) - companies controlled by the assessee through the shareholding of his minor son - advance rent received - Held that:- Merely because the shares are held by the minor son of the assessee and the loan is received by the assessee it cannot be established that assessee is the beneficial shareholder of 10% or more and therefore such loan amount is not chargeable to tax in the hands of the assessee. Furthermore the submission of the assessee before the lower authorities that it is in the nature of advance rent as whenever the rent is payable by the company to the assessee same is deductible from this amount therefore it partakes the character of advance rent. AO has not categorically stated that this amount is not advance rent and not adjusted subsequently against the rent payable by the company to the assessee. According to us if it is an advance rent then it becomes a business transaction and the provisions of deemed dividend cannot apply to such transactions. In view of this we reverse the finding of lower authorities in confirming an addition on account of advance rent received by the assessee from the Suba Microsystems private limited. - Decided in favour of assessee.
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