TMI Blog2018 (1) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities. More so, when the stock statement given to the bank reflects inflated value of the stock otherwise there being no difference in the quantity. Commissioner (Appeals) as well as the Tribunal have recorded a concurrent finding of fact that there was no difference in the quantity of stock as reflected in the books of account and in the statement submitted to the bank, it is not possible to state that the conclusion arrived at by the Tribunal suffers from any legal infirmity. - Decided in favour of assessee Deemed dividend addition u/s 2(22)(e) - ITAT allowed the claim - Held that:- In the present case, the assessee has not made any payment by way of advance or loan to a shareholder, but on the contrary, has received a loan from Ak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee filed return of income on 30.9.2010 declaring total income of ₹ 14,68,702/-. The case was taken up for scrutiny. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee was enjoying cash credit facility from Dena Bank against hypothecation of stock. Upon verifying the stock statement submitted to the bank, the Assessing Officer noticed that the assessee had shown excess stock to the bank. The Assessing Officer called upon the assessee to explain the difference. According to the assessee, the stock shown in the books of accounts was at cost price, whereas the same had been shown in the statement submitted to the bank at market value to avail higher drawing power and cash credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order by reiterating the grounds set out in the memorandum of appeal and in the assessment order. 5. Insofar as the issue raised vide proposed question A is concerned, a perusal of the impugned order reveals that the Tribunal has compared the stock statement for the year under consideration as per the books of accounts and as submitted to the bank and has found that there was no difference in the stock so far as the quantity is concerned. It was the case of the assessee that it is common practice to give inflated valuation to the bank to avail cash credit facilities which are invariably given on the hypothecation of the stock. It was also the case of the assessee that the price as shown in the books of account was in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a substantial interest or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits. In the present case, the assessee has not made any payment by way of advance or loan to a shareholder, but on the contrary, has received a loan from Akik Tiles Pvt. Ltd. and Marbolite Granito India Ltd. Therefore, if at all the provisions of section 2(22)(e) of the Act were applicable, it would be applicable to the companies who have made such payments, provided the assessee had the requisite share holding. In the present case, the assessee is a recipient of such amounts and hence, the Tribunal was wholly justified in holding that there w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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