9911796707
TMI Blog2013 (12) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961. Subsequently, notice under section 148 was issued. During the assessment proceedings, the Assessing Officer observed that the assessee has paid Rs. 1,94,58,728 from the company M/s. Puzzling Equipref Services (P.) Ltd. (PESPL). On the Assessing Officer's query to add the said amount under section 2(22)(e) of the Act, the stand of the assessee was that the amount was not received as a loan but as an advance against sale of its land situated in Gadatekri, Indore. Considering the submission of the assessee, the Assessing Officer held that the transaction was in the nature of loans and advances and, hence, invoked the provisions of section 2(22)(e) on account of deemed dividend. On finding that the accumulated profit of the company was R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned Commissioner of Income-tax (Appeals) relying on the decision of the Income-tax Appellate Tribunal, Indore, dated January 3, 2012, for the assessment year 2005-06, in the case of the assessee and deleted the addition of Rs. 57,57,676 in the assessment year 2004-05. Thereafter, the Revenue preferred the appeal before the Income-tax Appellate Tribunal Bench Indore for the assessment year 2004-05. The learned Income-tax Appellate Tribunal relying on its earlier decision dated January 3, 2012, dismissed the appeal by the impugned order dated August 28, 2012, by holding that the issue towards of deemed dividend under section 2(22)(e) of the Act was decided in the favour of the assessee and dismissed the appeal of the Revenue. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a loan but as an advance against the sale of its land situated in Gram Sinhansa Tehsil and District Indore. To support the contention the assessee has filed agreement to sell dated January 19, 2004, before the Assessing Officer. However, the Assess- ing Officer was not convinced with the same and held that the trans- action was in the nature of loans and advances. On finding that accumulated profit of the company was Rs. 58,43,165 he restricted the addition under section 2(22)(e) of the Act to the extent of accumu- lated profit, i.e., Rs. 58,43,165. On appeal before the learned Commissioner of Income-tax (Appeals), the assessee contended that the amount was received as loans and advances. However, the learned Commissioner of Income- tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from loans and advances to investment in the sub- sequent year. We, therefore, do not find any merit in the action of the lower authorities for treating the transaction as in the nature of loans and advances. The ground of the assessee is, therefore, allowed in his favour." The Income-tax Appellate Tribunal while deciding the identical facts for assessment year 2005-06 found that the agreement to sale was also wit- nessed payment of the impugned amount through account payee cheques on various dates which were mentioned on the said sale agreement as per the terms and conditions of the sale agreement. The amounts were received from the assessee against the sale of land and the title of which was clear from the documents placed on record an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In view of these facts, we are not in agreement with the conclusion drawn in the assessment order and affirm the stand of the learned Commissioner of Income- tax (Appeals) in accepting the claim of the assessee, resultantly, there is no merit in the appeal of the Revenue. Finally, the appeal of the Revenue is dismissed." In view of the aforesaid and considering the fact that this question has also been considered by the Division Bench of this court in the Income Tax Appeal No. 4 of 2011 decided on November 24, 2011, (since reported in CIT v. Om Prakash (No. 1) [2013] 359 ITR 39 (MP)) we are of the view that there is no infirmity in the impugned order. No substantial question of law is arising in this appeal. Accordingly, the appeal fai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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