9911796707
TMI Blog2022 (9) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Appeals)-I, Chandigarh is defective both in law and facts of the case. 2. That the Lrd. Commissioner of Income Tax (Appeals)-1 has erred in upholding Share Application Money received as deemed dividend u/s. 2(22)(e) in the hands of the Assessee Company without correctly appreciating the facts and the laid down law on the matter. 3. That the Lrd. Commissioner of Income Tax (Appeals)-1 has erred in upholding disallowance of depreciation on sewing machines without correctly appreciating the facts of the case. 4. That any other ground which would be taken up at the time of hearing with the kind permission of the Hon'ble bench. 2. None appeared on behalf of the assessee at the time of hearing nor any adjournment application was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment order as well as the order of the ld. CIT(A) and find that the ld. CIT(A) has taken into consideration the entirety of the facts and circumstances of the case and has, thereafter, recorded the findings stating that the real nature of the share application money is interest free loan and advance parked in the books of the assessee company and the same is clearly covered u/s. 56 r.w.s. 2(22)(e) of the Act, which is contained at Para No. 5.7.4, which is reproduced hereunder: "......5.7.4 In view of above, the AO has rightly held that the appellant falls in the situation i.e. "Any payment by a closely-held company of any sum by way of advance or loan to any HUF or firm or AOP or BOI or a company in which a 10% voting power share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruary, 2013 is hereby submitted for perusal. As per the terms and conditions of the VCF which subsequently became a part of the written Securities Subscription Agreement (SSA) executed between the appellant Company and VCF, the Company and Promoters shall ensure that immediately prior to investment by the Investor (VCF) there shall not be any shareholders in the appellant Company other than promoters. Appellant reproduced relevant extracts of relevant clauses in his reply. Therefore, to grab aforesaid investment opportunity and to the best interest of the Company, the board of the Company had decided to refund the aforesaid share application money. These facts show that the real nature of these share application money is interest free loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de with date, time and signature of the person at the entry that the machinery in the form of sewing machine was received at 5:30 PM. AO has further pointed out that the assessee has also claimed depreciation on machinery which has not even been received during the FY 2012-13. The machinery purchased from IIGM Pvt. Ltd. amounting to Rs. 6,78,300/- was purchased during the FY 2013-14 and not FY 2012-13. AO concluded that it is a clear indication that assessee is resorting to claim excess depreciation. The ARs of the appellant has submitted that sewing machines need no expertise for installation and the same are used immediately after removing the packing. The Ld. ARs further submitted that depreciation is allowed even if the asset has been u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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