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2021 (1) TMI 827 - AT - Income TaxDeemed dividend addition u/s 2(22) - advances to sister concerns - HELD THAT:- AR has taken the pain to demonstrate before us that these are regular sale and purchase of goods between both the sister concerns and this amount of ₹ 10.10 cr. given by M/s. Rohit Jeweller Pvt. Ltd. to M/s. Suman Jeweller Pvt. Ltd. was in the nature of trade advance and cannot be termed as advance as envisaged u/s. 2(22)(e) of the Act. Relying on the ratio-decidendi decision of the Hon'ble Delhi High Court in CIT Vs. Creative Dyeing & Printing [2009 (9) TMI 43 - DELHI HIGH COURT] and the ratio of the decision of Hon'ble Punjab & Haryana High Court in CIT Vs. Amrik Singh [2015 (2) TMI 731 - PUNJAB AND HARYANA HIGH COURT] we find that on the facts discussed by the Ld. CIT(A), and noted by us, we agree that the advance given by M/s. Rohit Jeweller to M/s. Suman Jeweller is trade advance in the normal course of business/commercial activity which happened due to business expediency and so the facts of the assessee's case falls in the exemption given in the CBDT circular No. 19/2017 (supra) and the ratio of case law discussed therein. - Decided against revenue.
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