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2023 (12) TMI 546 - AT - Income TaxAssessment u/s 153A - addition on account of unsecured loan on the ground that the assessee was not in position to prove the creditworthiness and genuineness of loan - Assessee argued these additions are not sustainable as there is no incrimination material found, as a result of search and the assessment attained finality - HELD THAT:- A perusal of the assessment order clearly reveals that these additions are not based upon incriminating material found during the search. This aspect was fairly conceded by the Ld. CIT-DR. Accordingly, these addition made dehors incriminating material found during the search which are liable to be deleted on the touchstone of the decision of the Hon’ble Supreme Court in the case of PCIT vs Abhisar Buildwell Pvt. Ltd. [2023 (4) TMI 1056 - SUPREME COURT] they are directed to be deleted as such. Thus additions are liable to be deleted on account of lack of incriminating material. Deemed dividend u/s 2(22)(e) - AO contended that Assessee is a common director and substantial shareholder in both the companies and therefore the provisions of section 2(22)(e) of the Act get attracted and made addition - Assessee submitted that the assessee was not a registered shareholder in the concerned company from which the loan was obtained - HELD THAT:- Assessee referred to the decision of Madhur Housing and Development Company [2017 (10) TMI 1279 - SUPREME COURT] and Ankitech (P) Ltd.[2011 (5) TMI 325 - DELHI HIGH COURT] for the proposition that addition for deemed dividend made u/s 2(22)(e) of the Act can be done in the hands of the shareholder only. Since, the assessee is not registered shareholder in the loan given company, the addition on the touchstone of above case laws is not sustainable. Hence, we delete the same. Advance payment without TDS - CIT(A) correctly deleted addition as AO has not looked into nature of the payments made by the appellant and has made the addition in a mechanical manner, without application of mind.
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