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2015 (7) TMI 479 - BOMBAY HIGH COURTDeemed dividend - whether Tribunal could not have applied section 2(22)(e)(ii) because, loans and advances were obtained from M/s. JMC Securities Pvt. Ltd. but money lending was not a substantial part of the business of that company? - Held that:- Tribunal referred to the assessment order in the case of M/s. JMC Securities Pvt. Ltd. for the year under consideration, namely 2006-07, wherein the nature of the business of that company was indicated as finance. The company continued in the business of short term finance of idle funds. M/s. JMC Securities Pvt. Ltd. During the year under consideration, earned interest income to the tune of ₹ 9,16,088/- which constituted about 70% of its total business income amounting to ₹ 13,04,088/-. The maximum amount of loan advanced by the company during the year under consideration was to the tune of ₹ 95,45,000/-. That constituted 32% of the total funds available with the said company. In these circumstances, the Tribunal concluded that that the lending of money is a substantial part of the business of M/s. JMC Securities Pvt. Ltd. The addition made by the assessing officer and sustained by the Commissioner was not valid and legal, particularly in the background facts. In the light of the undisputed factual position, we are of the view that the Tribunal's order is correct and reliance placed by it on Commissioner of Income-tax Versus Parle Plastics Ltd. [2010 (9) TMI 726 - BOMBAY HIGH COURT ] is not misplaced. - Decided against revenue. Disallowance u/s 14A - ITAT deleted addition - Held that:- This question is covered against the revenue by the Division Bench of this Court in the case of Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2010 (8) TMI 77 - BOMBAY HIGH COURT], In any event, direction to recompute the disallowance in the light of this judgment does not give rise to a substantial question of law - Decided against revenue.
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