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2016 (5) TMI 1095 - ITAT KOLKATARevision u/s 263 - enhancement of income in the form of deemed dividend u/s 2(22)(e) - Held that:- The assessee is holding more than 10% of the voting power in M/s. Ganesh Wheat Product (P)Ltd. It is not in dispute that the said company is having accumulated profits of ₹ 81,57,815/-. We find that the assessee had frequently drawn moneys from the said company and has also repaid moneys to the said company on several dates. Both the transactions are interest free and we also find that on several occasions that the balance outstanding is in favour of the assessee and also in favour of the said company. As relying on Pradip Kumar Malhotra vs CIT reported in(2011 (8) TMI 16 - CALCUTTA HIGH COURT) we find that the transactions in the form of current account should not be construed as loan or advances within the meaning of section 2(22)(e) of the Act. Accordingly grounds raised by the asessee are allowed and order of the ld.CIT u/s 263 of the Act is quashed. - Decided in favour of assessee
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