Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (11) TMI 127 - HC - Income TaxReopening of assessment u/s 147 - deemed dividend addition u/s 2(22)(e) - HELD THAT:- As perusal of the reasons recorded indicate that the basis and the reasons to believe for the revenue to reopen the assessment would indicate that the reasons to believe were based on “scrutiny of the case records, balance-sheet, Profit & Loss Account and computation of income.” There was no fresh or new tangible material available with the revenue to reopen the assessment. What is evident from the records too is that it was clearly pointed out that the assessee company is not a shareholder of GSEC Aviation Limited from whom the loan has been received.. From the annual accounts annexed to the petition, it is evident that a notice was given under Sec. 142 of the Act, to which the petitioner had responded showing that the shareholder of the companies were original owners and the shares holding not less than 10% of the voting power. Delhi High Court in the case of Ankitech [2011 (5) TMI 325 - DELHI HIGH COURT] had held that where loans and advances are given in the normal course of business and transaction in question benefits both, i.e. the payer and the payee companies, the provisions of Sec. 2(22)(e) cannot be invoked. It is well settled in the case of Kelvinator of India [2010 (1) TMI 11 - SUPREME COURT] that reason must have a link with the formation of the belief - Decided in favour of assessee.
|