TMI Blog2014 (11) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... sister concern M/s. Deepak Fertilizers & Petrochemicals Corporation Ltd.- On this loan, an interest of ₹ 21,83,698/- was paid to the sister concern - The assessee was the owner of the Unit only for One month and seven days and the total amount of dividend received from the UTI amounted to ₹ 1,82,23,200 - following the decision in DEEPAK NITRITE LIMITED Versus COMMISSIONER OF INCOME-TAX ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing substantial questions of law: A) Whether on the facts and circumstances of the case and in law the ITAT was justified in confirming the order of the CIT(Appeals) deleting the addition of ₹ 55,61,203/- made by the Assessing Officer disregarding the fact that the assessee's case was fully covered by the decision of the Hon'ble Supreme Court in the case of Mc'Dowel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als products. Its main products are concentrated and diluted nitric acid, sodium nitrite, sodium nitrate and ammonium nitrates etc. In the return of income was filed on 31.12.1990. In the return, the assessee company has claimed short-term capital loss on sale of units amounting to ₹ 1,96,92,000/-. The assessee had acquired 4,00,000 units on 6.10.88 which were sold by it on 20.4.89 aond on w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d received from the UTI amounted to ₹ 1,82,23,200/-. The assessee claimed deduction under sec. 80-M on the above dividend. If the whole transaction is seen in its proper perspective, it shall be seen that the assessee had resorted to this transaction for the sole purpose of reducing its profits. Therefore, notices came to be issued under sec. 143(2) and 142(1) to the assessee. The order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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