TMI Blog2016 (11) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... addition in respect of Intra Bank A/c of IDBI Bank and the Catholic Syrian Bank Ltd is deleted. Remaining two items, the assessee could not demonstrate the sources of alleged availability of opening balance. Similarly, in respect of cash loans, the assessee could not establish the creditworthiness of the depositors. In view thereof, it is held that in respect of opening cash and small loans as mentioned above, the assessee failed to discharge its onus; consequently, the additions in respect of the same are upheld, whereas the addition in respect of Intra-Bank Deposit is deleted. - Decided partly in favour of assessee. Deemed dividend u/s 2(22)(e) - Held that:- The nature of transactions reflected from the assessee’s account and compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l evidence was filed and a remand report was called for. The ld. CIT(A), however, on estimated basis, retained the addition of ₹ 15,00,000/-. Thus, impliedly the break-up of ₹ 15,00,000/- is as under:- i) Opening cash balance - ₹ 55,277/- ii) Small loans received - ₹ 1,07,174/- iii) Intra Bank deposits between The Catholic Syrian Bank Ltd IDBI Bank - ₹ 13,37,549/- 4. Apropos the opening cash balance, it is contended by ld. Counsel for the assessee that the assessee was having sufficient cash balance at the beginning of the year. Apropos the loans from private parties, confirmations from three persons were filed and for others confirmations could not be filed. However, these were small loa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . They being purely need based current account transactions, there is no justification in deeming it to be deemed dividend and adding u/s 2(22)(e) of the Act. Reliance is placed on Hon ble Gujarat High Court judgment in the case of CIT vs. Schutz Dishman Bio-Tech (P) Ltd in Tax Appeal No. 958 959 of 2015, holding as under:- Even otherwise, if the transactions are not in the nature of current accommodation adjustment account, the same are in the nature of deposits as it apparent from the nomenclature of the ledger account. If the transactions are in the nature of deposits and the same are between two corporate, it is nothing but Inter Corporate Deposits (ICD) which in any case would be outside the purview of section 2(22)(e) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from beginning has been evasive as no books of accounts were produced before the ld. AO and for the first time they were produced before the ld. CIT(A). The AO submitted his objections in the remand report called for in this behalf. Ld. CIT(A) was more than reasonable in admitting the additional evidence, calling for remand report and restricting the addition to ₹ 15,00,000/-. The addition retained by ld. CIT(A) is based on proper factual finding and based on material available on record and the same deserves to be upheld. 7. Apropos Ground No.2 also, the order of the ld. CIT(A) is relied on. 8. I have heard the rival contentions, perused the material available on record and gone through the orders of the authorities below. Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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