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TMI Blog2015 (9) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate findings categorizing the impugned loans as business advances have to be sustained. It has been held in case law CIT v. Creative Dyeing and Printing Private Ltd. (2009 (9) TMI 43 - DELHI HIGH COURT), that business advances cannot be treated as deemed dividends u/s 2(22)(e) of the Act. The Revenue does not quote any case laws to the contrary. This makes us to affirm the findings under challenge. - Decided in favour of assessee. - ITA Nos.2138 & 2139/Mds/2014 - - - Dated:- 5-3-2015 - Shri A. Mohan Alankamony And Shri S.S. Godara JJ. For the Appellant : Shri A.V. Sreekanth, JCIT For the Respondent : None ORDER Per bench: These Revenue s appeals for assessment years 2006-07 and 2008-09 arise from common o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read ₹ 12,30,510/- only. This amount stood added as deemed dividend under Section 2(22)(e) of the Act. 4. The assessee filed appeal. It would, inter alia, seek to prove in lower appellate proceedings that this amount ₹ 12,30,510/- was only in the shape of business advances. The CIT(Appeals) accepted its contentions as follows:- 4.2.3 Further, from the above details filed by the assessee it is seen that there are common share holders between the assessee company and M/s. Evershine Wood Packaging Ltd. Shri Shanthilal K. Patel, Shri Dharam C.K. Patel and Shri Karam C.K. Patel three common shares holders between these two companies. The share holding pattern of these persons in the assessee company are 5000 shares (25%), 5000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... control over the transactions, the assessee company is assigned the work of coordinating the supplies and, controlling the payments. These facts can be clearly visualized from the details of monies received from M/s.. Evershine Wood Packaging Ltd, the supplies of timber made to M/s.. Evershine Wood Packaging Ltd, etc. in various years, the details of which are as under: Particulars Account-1 Account-2 Net Opening Bal.as on 01.04.2005 0 0 0 Closing Bal. as on 31.03.2006 1,74,324 (Dr) 2,61,00,000(Cr) 2,59,25,676 (Cr) Clos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ₹ 19,421,439/- was outstanding as credit balance as on 31.03.2008. The assessee supplied timber to M/s. Evershine Wood Packaging Ltd in the following periods. In fact the amounts received in F.Y.2007- 08 are in turn advances to various suppliers for supply of timber. The details of the advances received, supplies (sales) of timber and the closing balances during the financial years 2005-06, 2006- 07 and 2007-08 are as under: Fin. Year Opening Bal Receipts during the year Sales made during the year Closing Balance as on 31 st March 2005-06 0 3,11,08,978 51,83,302 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mined all material on record for concluding that loans in question in the shape of business transactions / advances could not be treated as deemed dividends. The Revenue neither challenges the CIT(Appeals) s order on the ground of admitting any additional evidence nor does it refer to any material rebutting the said factual conclusion. Therefore, the lower appellate findings categorizing the impugned loans as business advances have to be sustained. It has been held in case law CIT v. Creative Dyeing and Printing Private Ltd. (2009) 318 ITR 476 (Del), that business advances cannot be treated as deemed dividends u/s 2(22)(e) of the Act. The Revenue does not quote any case laws to the contrary. This makes us to affirm the findings under challe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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