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2015 (10) TMI 987 - ITAT CUTTACKDeemed dividend u/s.2(22)(e) - CIT(A) deleted the addition - The written submission filed by the assessee, wherein, assessee contended that Rungta Agencies Pvt Ltd., has given loan or advance in the nature of loan to the assessee i.e. OCP Ltd. - Held that:- The assessee does not hold any share in Rungta Agencies Pvt Ltd., and assessee is not a shareholder or member in Rungta Agencies Pvt Ltd. Therefore, provisions of section 2(22)(e) of the Act is not applicable. We find that the facts of the assessee's case are similar with that of Bhaumik Colours [2008 (11) TMI 273 - ITAT BOMBAY-E]. We find that the CIT(A) has come to the conclusion to delete the addition made under section 2(22)(e) following the decision of Bhaumik Colours (supra). As the assessee is not shareholder of the company, who has advanced money, therefore, we are of the view that the CIT(A) is justified in his action and our interference is not required - Decided in favour of assessee. Addition on account of suppression of the value of concrete sleepers by the assessee - CIT(A) deleted the addition - Held that:- The assessee has shown the value of 2884 numbers at Nil. The assessee admitted that this rejected sleepers occasionally sold to private parties. The company sales the PSC sleepers to Indian Railways and when the sleepers are found to be defected after testing, they are rejected by the railway authorities. The assessee company has been consistently following the accounting practice of valuing the rejected railways sleepers as nil and accounted for on realization basis and the department has accepted this method. Therefore, for the year under consideration, the assessee is following same method and if this valuation is rejected, it will not affect the book results. Therefore, in our opinion, the CIT(A) is justified in his action and our interference is not called for.- Decided in favour of assessee.
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