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TMI Blog2010 (12) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 2(24)(x) read with sec. 36(1)(va) of the I.T. Act on account of PF ESIC. 2. Ld. CIT(A) erred, in law and on the facts and circumstances of the case, in deleting the addition of ₹ 70,00,000/- made by the AO u/s 2(22)(e) of the I.T. Act on account of deemed dividend. 3. Ld. CIT(A) erred, in law and on the facts and circumstances of the case, by accepting additional evidences in violation of rule 46A of the I.T. Rule. 4. Ld. CIT(A) erred, in law and on the facts and circumstances of the case, in deleting the addition of ₹ 6,19,095/- made by the AO on account of under valuation of closing stock. 5. The appellant craves to amend modify, alter, add or forego any ground of appeal at any time before or during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el.) has deleted the disallowance. 3. We have heard both the parties on this issue and we found that disallowance has rightly been made by ld. CIT(A) as the same is not only in accordance with aforementioned decision of Delhi High Court with the view taken by Hon ble Delhi High Court has been confirmed by Hon ble Supreme Court in the case of CIT Vs. Alom Electronics Ltd. 319 ITR 306. Therefore, we dismiss ground no. 1 of the revenue. 4. Apropos ground no. 2 3 we found that as per chart described in para 6 of order of CIT(A). M/s Saumya Meattle is only the beneficial owner of the shares but not registered owner as the registered owner of the shares is Standipack Pvt. Ltd.. Though ld. CIT(A) has deleted the addition on the ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecom Ancillaries P. Ltd. 31,010 Same as Col.1 23.90 Unisystems P. Ltd. 30,100 Same as Col.1 23.12 Gorima P. Ltd. 30,100 Same as Col.1 23.20 Total 1,29,750 The assessee has also clarified that payment for acquisition of these shares has also been made by Saumya Meattle and these shares were held in the name of the assessee company as Saumya Meattle during the relevant period was out of the country. AO has further brought on record tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in para no. 41 was as under: - On the second question: The expression shareholder referred to in sec. 2(22)(e) refers to both a registered shareholder and beneficial shareholder. If a person is a registered shareholder but not the beneficial shareholder than the provisions of sec. 2(22)(e) will not apply. Similarly, if a person is a beneficial shareholder but not a registered shareholder than also the provisions of sec. 2(22)(e) will not apply. 7. In this view of the situation, as factual aspect that assessee company is only a registered shareholder and not beneficial shareholder could not be controverted, we find no infirmity in the order of CIT(A) and respectfully following the aforementioned decision of Spl. Bench it has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e observations of AO on this issue as contained in the remand report are as follows: - Disallowance on account of undervaluation of stock This addition was made on the basis of a comment in the Tax Audit Report Col. No. 12B which states that the closing stock of raw material have been undervalued by ₹ 619,095/- but it has no impact on profit as computed under the Act as explained it Annexure-D. Annexure-D gives details of deviation in valuation of closing stock. It is true that addition was made on the basis of the aforesaid comment in Tax Audit Report without any further clarification from the assessee. During the course of appellate proceedings, the assessee made clarification with reference to certificate of stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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