TMI Blog2021 (4) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... we observe that he has passed well-reasoned order and, in our considered, it does not require any interference. CIT(A) considered the submissions made by the assessee before him and analyzing the issue with case law, held that the provision of section 2(22)(e) has no application in case of the assessee. Therefore, we do not find any infirmity in the order of the CIT(A) in directing the AO to delete the addition - Decide in favour of assessee. - ITA No. 2015/H/2018 - - - Dated:- 9-4-2021 - Satbeer Singh Godara, Member (J) And Laxmi Prasad Sahu, Member (A) Revenue by : Shri YVST Sai Assessee by : None ORDER PER L. P. SAHU , A. M. This appeal filed by the Revenue is directed against CIT(A) - 2, Hyderabad's order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... percent of the voting power, or to any concern in which such shareholder is a member' or a partner and in which he has a substantial interest or any such shareholders, to the extent to which the company in either case possesses accumulated profits, shall be assessed as deemed dividend. 2.2. Further, the AO observed that the assessee shri B.S. Reddy is one of the beneficial shareholder and income of ₹ 19,99,96,148/- to the extent of percentage of shareholding as per above table i.e. 62% of 3,22,51,851/- ₹ 1,99,96,148/- has escaped assessment in his hands. Therefore notice u/s. 148 dated 21.3.2016 was issued and served on 25.3.2016 after recording the reasons and after obtaining approval of Addl. Comm. Range 2. In response ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces under the provisions of section 2(22)(e) of the Act, on the ground that transaction between the assessee and his company is coming within the definition of loans and advances. The assessee claims that transaction between himself and his company is not a gracious payment which is coming within the meaning of loans and advances as defined u/s. 2(22)(e) of the Act. The CIT(A) after considering the explanation furnished by the assessee and also following the decision of Kolkata High Court, in the case of Pradip Kumar Malhotra Vs. CIT, held that the transaction between the assessee and his company are not gracious payment which is coming within the meaning of loans and advances as defined u/s. 2(22)(e) of the Act. Considering the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any during relevant assessment year, would fall within inclusive sub-clause (e) of definition of 'dividend' appearing in section 2(22)(e); opening words 'any payment' occurring in sub-clause (e) of section 2(22) contemplates actual payment made by company to assessee for being treated as a dividend in computing income of assessee. CIT v. Parle Plastics Ltd. [2011J 196 Taxman 62/8 taxmann.com 155 (Bam.). In the case of the Appellant, no actual amount of loan or advance has been received by the Appellant. 9. In view of the above, it shall be clear that the provision of section 2(22)(e) has no application in case of the Appellant and therefore the addition made by AO amounting to ₹ 1,99,96,148/- is required to be del ..... X X X X Extracts X X X X X X X X Extracts X X X X
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