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2022 (1) TMI 35 - AT - Income TaxReopening of assessment u/s 147 - deemed dividend addition u/s.2(22)(e) - HELD THAT:- When we peruse the reasons recorded for reopening of assessment in the present case of the assessee as recorded by the Assessing Officer, we find that there is no scope for any hypothetical or any contingency in the given reasoning. The entire reasons have been specifically spelled out by the Assessing Officer and reasons have been recorded without any room for any guess work or surmises. This is not at all the case of any hypothetical situation or the case of any future contingency. In that respect, the decision of the Hon‟ble Jurisdictional High Court is factually not applicable in the present facts and circumstances of the case of the assessee. Therefore, the additional ground raised in appeal by the assessee is dismissed. Even in grounds relating to merits also, as evident from the findings of the Ld. CIT(Appeals), the assessee has not at any stage neither before the Assessing Officer nor before the CIT(Appeals) has explained the commercial expediency of the transaction that as specifically brought out by the findings of the Ld. CIT(Appeals) of her order that assessee has not been able to demonstrate through any cogent or credible evidence that this transaction that he had with the M/s. Hextech Engineering Pvt. Ltd. was commercial in nature. Therefore, the Assessing Officer rightly taxed the same as deemed dividend to the extent of accumulated profit in the hands of the assessee. Even before us also, the assessee was unable to demonstrate through any materials/evidences on record to substantiate the commercial nature of the transaction or expediency involved in the same. In view thereof, we do not find any infirmity with the findings of the Ld. CIT(Appeals) and the same is therefore, upheld. Thus, grounds on merits raised in appeal memo by the assessee are dismissed.
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