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2016 (9) TMI 1472 - AT - Income TaxAssessment of holding and subsidiary company - addition of income - Held that:- In the case of the assessee, we note that the income of ₹ 6 crore has already been taxed in the hands of the holding company during last year. Therefore, the same could not be taxed again in the hands of the subsidiary company during this year. Addition being the compensation received on account of “store deposit” under the Transfer Agreement as business income - Held that:- The amount of ₹ 42,75,600/- was paid by the holding company directly to the landlord, i.e., M/s Regency Park Property Management Services Pvt. Ltd on behalf of the assessee. Since the payment was made directly by the holding company and not through the assessee, the entry did not find place in the accounts of the assessee. In the books of the account of the holding company, it is reflected as security deposit. Subsequently, it was transferred from the security deposit to the assessee's account in the next year. Therefore, the amount being advance given by the holding company directly to the landlord on behalf of the assessee, was transferred to the assessee's account subsequently. We also note that no profit element is involved in this transaction which is in fact an advance given to the assessee through the security deposit route and deserve to be deleted. Accordingly, we delete the addition - Decided in favour of assessee
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