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2018 (5) TMI 1908 - AT - Income TaxDeemed Dividend u/s 2(22)(e) - CIT (A) deleted the above addition on the ground that assessee is not a shareholder in M/s. IRIS Associates Pvt. Ltd and the money was received in normal course of business and therefore, outside the purview of section 2 (22) (e) - HELD THAT:- A perusal of the grounds raised by the revenue shows that the revenue has not challaneged the finding given by the CIT(A) that the money received was in normal course of business and therefore, not covered by the section 2 (22) (e) of the IT Act. We, therefore, uphold the order of the CIT(A) deleting the addition on the ground that the money received being in normal course of business is beyond the purview of section 2 (22) (e) of the IT Act. Even otherwise also an it is an admitted fact that the assessee company is not a shareholder in M/s. IRIS Associates Pvt. Ltd. the Hon’ble Supreme Court in the case of CIT Vs. Madhur Housing Development Company [2017 (10) TMI 1279 - SUPREME COURT] where it has been held that although there were persons having substantial interest in the assessee company and company which gave the loan, the assessee company not being shareholder of the company which gave the loan, the loan was not assessable as deemed dividend in assessee’s hands. Although this decision has been doubted by the Hon’ble Supreme Court in the case reported as National Travel Services Vs. CIT [2018 (1) TMI 1159 - SUPREME COURT] however, unless the decision of the Hon’ble Supreme Court is reversed the same is binding on the Tribunal. In this view of the matter we uphold the order of Ld. CIT (A) on both the counts i.e. (a) it is a commercial transaction and therefore, beyond the purview of section 2(22)(e) and (b) assessee is not a shareholder in M/s. IRIS Associates Pvt. Ltd. therefore, the provisions section 2 (22)(e) are not applicable. The grounds raised by the revenue are accordingly dismissed.
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