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2017 (6) TMI 479 - AT - Income TaxAddition of deemed dividend under section 2(22)(e) - Held that:- As find from the above provisions of the Companies Act 1956, the amended provisions, that the assessee taken inter corporate deposit from its subsidiary named Balkrishna Paper Mills Ltd. and AO assessed the same as deemed dividend under section 2(22) (e) of the Act. We find that in view of the amended provisions of Companies Act 1956, the assessee being a Public Ltd. Company has taken loan from a subsidiary which is also a public Ltd. Company, by virtue of the amended provisions and therefore, the assessee falls within the provisions of section 2(18) read with relevant provisions of the Companies Act and hence, there is no dispute that the provisions of section 2(22)(e) will not attract to the present case of the assessee. - Decided in favour of assessee. Addition made on non reconciled AIR data - Held that:- This issue can be sent back to the file of the AO for fresh reconciliation statement of the assessee so that he can verify vis-ŕvis AIR information relevant reconciliation and accordingly, decide the issue. We direct the AO accordingly. Addition of valuation of closing stock by treating the change in method of closing stock as ‘sham’ - Held that:- We find that the assessee has followed a bonafide system of accounting and once the system is bonafide no interference can be done by Revenue in the valuation of stock. None of the authorities below have doubted the bonafide of the assessee in regard to change in method of valuation of closing stock, we delete the addition and allow the appeal of the assessee on this issue. See Melmould Corporation Versus CIT [1993 (2) TMI 82 - BOMBAY High Court]- Decided in favour of assessee.
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