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2018 (10) TMI 914 - AT - Income TaxAddition towards deemed dividend U/s.2(22)(e) - Held that:- From the order of the CIT(A), it is crystal clear that there was various commercial factors existing between the assessee and M/s. Samba Publishing Company Pvt. Ltd. The business transaction between the assessee and M/s. Samba Publishing Company Pvt. Ltd., were intermingled and both the entities were consistently working together to develop a common business. The circular of the CBDT cited supra squarely applies to the case of the assessee which specifically narrows down the scope of the rigger in the provision of Section 2(22)(e) of the Act. In the case of the assessee, outstanding balances occurred due to commercial exigencies such as regular trading business and consistent services rendered by the assessee. In these circumstances the provision of Section 2(22)(e) cannot be invoked as clarified by the CBDT circular cited supra. Further the case laws referred by the CIT(A) extracted herein above also squarely applies to the case of the assessee. In this situation, we do not find it necessary to interfere in the order of the Ld.CIT(A). - Decided against revenue.
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