TMI Blog2023 (5) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... [ 2022 (8) TMI 1382 - ITAT PUNE] has also adopted judicial consistency for accepting the Revenue s very stand as well. Faced with the situation, we hereby adopt the above detailed reasoning mutantis mutandis to restore the impugned deemed dividend addition made by the AO in his assessment - This Revenue s appeal succeeds. - ITA.No.1937/PUN./2017 - - - Dated:- 23-5-2023 - Shri Satbeer Singh Godara, Judicial Member And Shri Inturi Rama Rao, Accountant Member For the Revenue : CA Abhay Avachat For the Assessee : Shri Ramnath P Murkunde ORDER PER SATBEER SINGH GODARA, J.M. : This Revenue s appeal for assessment year 2010- 2011, arises against the learned CIT(A)-1, Pune s appeal No.PN/CIT(A)1/DCIT Cir.1(2)/PN/293/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbay High Court being jurisdictional High Court. 7. For these and such other grounds as may be urged at the time of hearing, the order of the Ld. CIT(A) may be vacated and that of the AO may be restored. 8. The appellant craves to add, amend,- alter or delete any of the above ground of appeal during the course of appellate proceedings before the Hon ble Tribunal. 3. It thus emerges from perusal of the Revenue s pleadings that it s sole substantive grievance raised in the instant appeal challenges correctness of the CIT(A)'s action reversing the assessment findings making sec.2(22)(e) deemed dividend addition of Rs.1,07,62,848/-. The assessee s stand throughout is that the impugned sum represents intercorporate deposits be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re judicial pronouncements to distinguish deposit from loan. Loans are given at the request of borrower against interest payment. Per contra, deposits are given out of excess fund voluntarily on the proposal of the lender with interest. 4.2 In the present case, the assessee has not placed on record any document or agreement inviting the deposit. Leave alone such invitation, the assessee sister concern is whole depositor and the same is described as Inter Corporate Deposit in the books of the assessee. There is no document placed before us for deciphering the real intention of the depositor or to find out whether it was deposit or loan and therefore, on the facts of the present case, there is requirement of taking adverse inference ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is caused to be invited in accordance with the rules made under sub- section (1), and (b) an advertisement, including therein a statement showing the financial position of the company, has been issued by the company in such form and in such manner as may be prescribed. 4.5 In our opinion, though there is distinction between Inter Corporate Deposits and loan/advances, but for that purpose, the assessee was required to substantiate that the amount received by the assessee was in the form of Inter Corporate Deposits . As mentioned herein above, the assessee was failed to bring on record any documentary evidences except oral submission that the amount received by it was in the form of Inter Corporate Deposit . No evidence toward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose various amounts received by the assessee and given back by the assessee clearly show that it was Running Account . 4.7 If we examine the issue from another angle, to find out whether the amount given by the assessee was in fact in the nature of loan/advances and was Inter Corporate Deposit . It is essential for the amount given as Inter Corporate Deposits , there should be voluntariness emanating from the lender to give the amount to the assessee and not from assessee. In this case, there being common Managing Director, amount was being transferred as and when there was requirement of fund by the assessee from the account of M/s. Dhariya Infrastructure Development Pvt. Ltd. and thereafter returned back by the assessee to the len ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trued as dealing with loans not amounting to deposits, because, otherwise, if deposit of moneys with corporate bodies were to be treated as loans, then deposits with scheduled banks would also fall within the ambit of section 370 of the Companies Act. Therefore, moneys given by the company to the other bodies corporate is a loan within the meaning of section 370 of the Companies Act must be negatived. Therefore, the petitioners would well be entitled to the relief. 4.9 Further we may also rely upon the coordinate Bench decision in the matter of KIIC Investment Company [2019] 101 taxmann.com 19 (Mumbai - Trib.) , wherein the Bench had allowed the claim, as the intention can be gathered from the agreement, board resolution and other cir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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