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TMI Blog2013 (12) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... and disposed of in this composite order. Appeal wise and ground wise adjudication is given in the succeeding paragraphs. 2. At the outset, Shri Rajiv Khandelwal, Ld Counsel for the assessee brought our attention to the two appeals for the AY 2008-2009 and mentioned that all the issues involved in these appeals are required to be remanded to the CIT (A) with certain directions. Bringing our attention to the ground no.1 of the ITA No.7729/M/2011, Ld Counsel mentioned that the core issue relates to whether there is a need for giving advances to certain parties free of any interest. The other limb of the ground no.1 relates to the disallowance @ 20% by product method in respect of such interest free advances. Further, Ld Counsel brought our at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advances granted by the assessee. Ld Counsel also brought our attention to page 9 of the paper book and mentioned that assessee has reverses as well as share capital to explain the impugned loans given without charging the interest. 3. On the other hand, Ld DR relied on the order of the AO and mentioned that the assessee failed to demonstrate the nexus between the interest free advances and the interest free loans taken by the assessee. 4. We have heard both the parties and perused the orders of the Revenue Authorities as well as the relevant material placed before us. The limited issue raised by the assessee relates to the applicability of the binding judgment of the Hon'ble jurisdictional High Court judgment in the case of Reliance Util ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions stipulated and the price of Rs. 65/- mentioned above is disturbed depending on the actual offer price to be announced by the said company during the IPO period. The IPO did not materialize in this year and the transferees of the shares demanded for refund of the money in cancellation of the cited agreement. In compliance of the said oral request, assessee refunded the same, however, these amounts were finally transferred to Dr. Murali Manohar at the higher rates. On these facts, Ld Counsel submitted that assessee offered the profits, on sale of the shares to Dr. Murali Manohar, to tax in the AY 2009-2010. Ignoring the same, the AO recognized the profits in the year under consideration and did not give any relief in respect of the profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost of the shares u/s 48 of the Act when the shares are transferred to Dr. Murali Manohar. CIT (A) needs to take a consistent stand in this regard and is required to pass a speaking order considering the fact that the same income should not be taxed twice. For this purpose, we remit the matter to the files of the files of the CIT (A) to adjudicate the issue afresh after granting a reasonable opportunity of being heard to the assessee. In the set aside proceedings, assessee is free to provide necessary calculations and evidences which are required. In this regard, CIT (A) may call for remand reports, if necessary, in accordance with the rules in existence. Accordingly, ground no.2 of appeal ITA No. 7729/M/2011 is allowed for statistical pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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