TMI Blog2011 (5) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal and cross-objection are being disposed of by this common order for the sake of convenience. 2. Briefly stated the facts of the case are that the assessee company is engaged in the business of providing financial services. It filed return declaring the income at ₹ 1,23,311/-. During the course of assessment proceedings, the AO on examination of balance-sheet observed that the assessee has obtained unsecured loan of ₹ 37,50,000/- from Gazebo Developers Pvt.Ltd. a group Company. It was further observed that the assessee and the group company had a common shareholding pattern as under : Sr. No. Name of the shareholder Gazebo Developers Pvt. Ltd. Om Sid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Special Bench of the Tribunal in ACIT V/s M/s Bhaumik Colour (P) Ltd dated 18.11.2008 held that the provisions of section 2(22)(e) of the Act are not applicable in the case of the appellant and accordingly deleted the addition made by the AO. 4. Being aggrieved by the order of the learned Commissioner of Income Tax (A), the Revenue is in appeal before us challenging in all the grounds that the deletion of addition of ₹ 37,50,000/- made by the AO u/s 2(22)(e) of the Act. 5. At the time of hearing, the learned D.R. supports the order of the AO. 6. On the other hand, the representative of Shri M.P.Sharma, Chartered Accountant of the assessee-company submits an application seeking adjournment on the ground that Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee but in the hands of the shareholder . 9. In the absence of any distinguishing feature brought on record by the learned D.R., we respectfully following the decision of the Special Bench of the Tribunal (supra) and the decision of the Hon ble Bombay High Court (supra) hold that the provisions of section 2(22)(e) are not applicable in the case of the assessee and accordingly we are inclined to uphold the finding of the learned Commissioner of Income Tax (A) in deleting the addition made by the AO. The grounds taken by the Revenue are, therefore, rejected. C.O.No.33/Mum/2011 (by Assessee) 10. In the Cross-objection, the assessee has supported the order of the learned Commissioner of Income Tax (A). This being so and in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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