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TMI Blog2010 (1) TMI 1243X X X X Extracts X X X X X X X X Extracts X X X X ..... h ORDER J. Sudhakar Reddy (Accountant Member) This is an appeal filed by the Revenue directed against the order of the CIT(Appeals)-VII, Mumbai dated 24-10-2008 on the following ground : On the facts and in the circumstances of the case and in law, the CIT(A) erred in directing the Assessing Officer to delete the addition of ₹ 4,42,00,000/- made u/s 2(22)(e) of the I.T. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res and preference shares and hence it was reflected under the head Share application money in the assessee s audited balance sheet. The assessee states that in the assessment order the AO erroneously stated that the assessee company was the registered share holder of Optimum Stock Trading Co. Pvt. Ltd. which is holding 10% of the voting power, whereas the fact is that the assessee company does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reated the amount as a deemed dividend as per provision of section 2(22(e) of the Act. 2.1 Aggrieved, the assessee carried the matter in appeal. The first appellate authority applied the decision of the Delhi Bench of the Tribunal in the case of Ardee Finvest (P) Ltd. 79 ITD 547 (Del.) and on facts came to a conclusion that the amount received by the assessee is share application money and util ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity, in our considered opinion, had correctly dealt with a matter and held that share application money cannot be deemed to be loan or deposit. Further, he rightly observed that the AO without any basis has stated that the assessee was a habitual borrower. He held that the issue is squarely covered in favour of the assessee and against the Revenue by the decision of the Delhi Bench of the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the foreign company for the purpose of computing the capital under section 80J. 4. Further, the first appellate authority has recorded a finding of fact that the money taken as share application money was actually utilized for allotment of shares. This factual finding has not been controverted by the learned DR with any evidence. Thus in view of the above discussion, we uphold the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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