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2018 (4) TMI 1428 - ITAT KOLKATARevision 263 - deemed dividend addition u/s 2(22)(e) - Held that:- The assessee had furnished the information vide his replies dt. 25/03/2015, 22/01/2015, 11/02/2015. So the facts that SVPL is a related party and that it has given loans to the assessee was enquired into by the Assessing Officer. It cannot be said that there was no enquiries or verification made by the Assessing Officer on this issue of loan. Inadequate enquiries cannot be a basis for invoking powers u/s 263 of the Act, by the ld. Pr. CIT. At the same time, it is a fact that the ld. Assessing Officer has not recorded that he had examined the transaction from the angle of Section 2(22)(e) of the Act. When the assessee has submitted that what was given was an Inter Corporate Loan and that it carried interest and that it was not a gratuitous loan and SVPL is a NBFC and that substantial part of its business, in fact more than 90 per cent of its business is lending money i.e. giving loan and advances and when the judgement of the Hon’ble Jurisdictional High Court and the Tribunals which had laid down propositions of law on this issues are placed before the ld. Pr. CIT, to come to a conclusion, contrary to these judgments cannot be countenanced. The submissions made by the assessee either on facts or on law has not been controverted by the ld. Pr. CIT. The ld. Pr. CIT is bound by the proposition of law laid down by the Hon’ble Jurisdictional High Court. Ignoring the same makes the order bad in law.- CIT as bound to conduct enquiry and verification on its own and give his findings in facts and law. This was not done. - Decided in favour of assessee
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