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TMI Blog2014 (10) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee company for the purpose of purchase of raw material and to make payments to M/s. Hindalco Limited to meet their business/trading liabilities - the Tribunal rightly recorded that there is no element of deemed dividend and the amount of undistributed dividend of the subsidiary company cannot be said to be deemed dividend of the assessee company - there was a running account between the parties and interest was charged - Apart from that, a sum of ₹ 1,12,24,745/- was standing to the credit of the subsidiary company – thus, there was no reason to interfere in the order of the Tribunal – Decided against revenue. - I.T.T.A No. 238 of 2003 - - - Dated:- 15-10-2014 - Sri L. Narasimha Reddy And Sri Challa Kodanda Ram,JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see company borrowed certain amounts from the subsidiary company, the said amount was sought to be taxed in the hands of the assessee by applying the provisions of Section 2(22)(e) of the Act. The appeal filed by the assessee with the first appellate authority ended up in dismissal and thereafter, it filed further appeal to the Tribunal. The Tribunal, after analysing the facts on record, gave a categorical finding that there were mutual transactions between the parties in the normal course of business and the subsidiary company had also one of its objects, as lending money, and for the monies lent to the assessee company, the subsidiary company had charged interest at the rate of 13% per annum. Taking all these aspects into consideration, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before us and the relevant provisions of different statutes, we observe as follows: Although the Assessment order and the order of the CIT (A) appear to have been made on a sound footing, but on a critical analysis of the provisions of the statute and on a perusal of the written submission filed by the learned AR of the assessee, after hearing the vociferous argument made by the Senior Counsel Mr.K.K. Viswanathan in this regard, we are unable to ignore the technicalities of law clinching in favour of the assessee. Firstly, because as discussed above, Clauses 9 and 10 of the Object clauses of the Memorandum of Association of M/s. Anam Machinery Fabricators Ltd., authorise that company to accumulate funds, to lend, invest or otherwise em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Act as well as Companies Act and the documents relied by the Appellant, we do not find any alternative than to delete this addition in favour of the assessee because of the technicalities adumbrated in the respective statues which were strictly complied with by the assessee-company. 6. In the light of the findings recorded by the Tribunal and in view of the fact that there is no challenge to the findings recorded by the Tribunal, by raising a plea that such findings of fact are perverse, the findings of fact as recorded by the Tribunal are required to be accepted as final and binding on the Court under Section 260A of the Act. 7. When we analyse the facts on record, it is evident that the assessee-company owed certain su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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