TMI Blog2017 (11) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... the normal course of business. In view of the above as well as CBDT’s Circular No.19/2017, Section 2(22)(e) is not applicable in the facts of the case under appeal before us. - Decided in favour of assessee. - ITA Nos. 4209/Del/2017 and 4210/Del/2017 - - - Dated:- 2-11-2017 - Shri G.D. Agrawal, President And Shri Sudhanshu Srivastava, Judicial Member Appellant by : Shri Gautam Jain, Advocate and Shri Lalit Mohan, CA. Respondent by : Shri F. R. Meena, Senior DR. ORDER Per G. D. Agrawal, President These appeals by the assessee for the assessment year 2011-12 2012-13 are directed against the order of learned CIT(A)-21, New Delhi dated 18th April, 2017. 2. In both these appeals, the assessee has challenged disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduced below :- Sl.No. Name of the company Nature of transaction Percentage share holding of assessee Loan Amount 1 Superior Films (P) Ltd. Lender company 26.9% 2 Superior Clothing (P) Ltd. Borrower Companies 40.9% 23,13,81,230 3 Superior Crafts (P) Ltd. Borrower Companies 30.5% 14,89,805 4 Satyam Autoserve (P) Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(22)(e) either in the case of the borrower company or in the case of the assessee in any other year except these two years under consideration, that too, in the case of the assessee who is an individual and who has not borrowed any money. He stated that Section 2(22)(e) is not applicable in respect of a normal business transaction. In support of this contention, he relied upon the decision of Hon ble High Court of Calcutta in the case of Pradip Kumar Malhotra Vs. CIT [2011] 338 ITR 538. He also relied upon the Circular No.19/2017 of CBDT. 6. Learned DR, on the other hand, relied upon the orders of authorities below and he stated that since the assessee has substantial interest in the concerns which advanced the money and also the conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08- 09 47,78,479 7,25,342 13,79,730 68,83,551 10,45,77,420 11,14,60,971 143(1) iii) 2009- 10 7,21,01,18 9,089 10,45,446 82,64,653 6,33,29,416 7,15,94,069 143(1) iv) 2010- 11 -- -- 8,61,190 8,61,190 13,88,227 22,49,417 143(1) v) 2011- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,63,71,267 1,53,01,200 8,16,72,467 143(1) x) 2016- 17 2,86,31,756 -- 2,57,26,625 5,43,58,381 1,76,47,588 7,20,05,969 143(1) 8. From the above, it is evident that M/s Superior Films (P) Ltd. is receiving substantial interest from the group concerns as well as others right from assessment year 2007-08 to 2016-17. From page 6 onwards of the written submissions, the assessee has given the transactions between M/s Superior Films (P) Ltd. and other group concerns, from which, it is evident that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 2(22)(e) is made in the case of an assessee who is an individual. Admittedly, no advance or borrowed money is received by the assessee from the concerns in which the assessee is a shareholder. There is a transaction of advancing of money by M/s Superior Films (P) Ltd. to the group concerns in the normal course of business. In view of the above decision of Hon ble High Court of Calcutta as well as CBDT s Circular, Section 2(22)(e) is not applicable in the facts of the case under appeal before us. We, therefore, respectfully following the above decision of Hon ble High Court of Calcutta as well as CBDT s Circular, delete the addition made u/s 2(22)(e) of the Act. 12. In the result, the appeals of the assessee are allowed. Decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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