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2022 (3) TMI 31 - AT - Income TaxAddition on account of deemed dividend u/s 2(22)(e) - HELD THAT:- CIT(A) held that assessee is neither registered nor beneficial shareholder of JIIPL. Thus, the deeming provision of section 2(22)(e) is for taxing deemed dividend is always meant for registered and beneficial shareholder of the JIIPL company. We find that the CIT(A) also examined the contention of assessee made purchases to the tune of ₹ 127.24 crores from JIIPL during the year under consideration and that transaction with JIIPL was pertaining to business transaction and not liable to be covered by the ambit of section 2(22)(e) - CIT(A) held that AO has not controverted this contention of assessee in the assessment order. CIT(A) further held that during appellate proceedings, the assessee furnished copy of ledger account of transaction with JIIPL and filed copy of transfer pricing officer (TPO) under section 92(CA), pertaining to specific domestic transaction with its associates companies. To support his contention, CIT(A) find the fund from JIIPL was pertaining to the business transaction - CIT(A) by referring the decision of Hon'ble jurisdictional High Court in the case of Shripad Concrete Pvt.Ltd. [2013 (7) TMI 117 - GUJARAT HIGH COURT] wherein the Hon'ble court held that advance on account of business transaction cannot be categorized as loans so as to attract deeming fiction under section 2(22)(e) of the Act. We also find merit in the submission that on similar transaction in earlier and subsequent year no such addition was based on similar transaction. In our view, the Ld. CIT(A) is after considering the entire fact and legal position took a legaly plausible view which we affirm. So far as reliance in case of National Travel Services [2018 (1) TMI 1159 - SUPREME COURT] by Ld. CIT-DR, we find that in the said decision the Hon'ble apex court merely referred the case before Hon'ble Chief Justice of India to constitute a larger bench and no finding which may be said to the adverse to the assessee is made. In view of the aforesaid factual and legal discussion, we affirm the order of Ld. CIT(A). - Decided against revenue.
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