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2017 (4) TMI 872 - AT - Income TaxPenalty u/s 271(1)(c) - addition of deemed dividend under section 2(22)(e) - Held that:- The lower authorities clearly brought on record that there was no authority by way of Board Resolution from M/s.Chroma Print India Pvt Ltd. to give the said amount of ₹ 52,64,846/- . When there is no resolution or authority from the Board of Directors of the said company, to give the said amount to the assessee, it cannot be said that there exist in commercial expedience to grant such a huge amount to the assessee. In such circumstances, in our opinion, the provisions section 2(22)(e) of the Act is applicable to the amount received by the assessee from the said company and in this regard, we do not find any infirmity in the order of the CIT(Appeals) There is no Board Resolution passed by the company to give money to the assessee. Board of Directors of the amalgamated company had a Board meeting on 30.06.2010 approving the scheme of amalgamation. The petition of amalgamation was dated 23.07.2010. Hence, the statement of the assessee is that the balance in the books of account of M/s.Mind Ware Pvt Ltd., was to be considered have no merit. More so, the balance appeared in the books of account of M/s.Chroma Print India Pvt Ltd. was before filing the amalgamation petition dt.23.07.2010. Being so, this argument cannot hold any merit. This argument is also rejected. - Decided against assessee Coming to the penalty levied in our opinion the addition on account of deemed provisions cannot be construed as furnishing inaccurate particulars of income or concealment of income. See CIT Vs. Reliance Petroproducts Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT ]. - Decided against revenue
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