9911796707
TMI Blog2015 (8) TMI 1261X X X X Extracts X X X X X X X X Extracts X X X X ..... In this appeal, the assessee has raised the following grounds of appeal:- "1. Against addition of Rs. 905,515/- as deemed dividend U/S 2(22)(e) of the Income-tax Act, 1961 (Act). The Commissioner of Income-tax (Appeals) -17, Mumbai [hereinafter referred to as CIT (A)] has erred in upholding the addition of Rs. 905,515/ - made by the Assessing Officer ('AO') u/s 2(22)(e) of the Act ignoring the facts of the case. The CIT (A) should have appreciated that the said amount represents following: a. Rs. 900,000/- being repayment of loan advanced by the appellant to Tainwala Trading and Investment Co. Pvt. Ltd. (TTIC) on 1st April 2009. b. Rs. 5,515/- being rental income of the appellant offered to income tax by the appellant. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) be deleted, in the interest of natural justice." 2. The appellant before us is a company incorporated under the provisions of the Companies Act, 1956 and is inter-alia, engaged in the business of investment in movable and immovable assets and buying, selling, marketing and dealing in all kinds of fashion products and commission agency. For the year under consideration it filed a return of income,declaring an income of Rs. 10,25,26,780/- which was subject to scrutiny assessment, wherein the total income was determined at Rs. 10,65,59,300/-. The addition made to the returned income, and which is subject matter of controversy before us, is an amount Rs. 37,80,390/-, which was added in the hands of the assessee company as 'deemed di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Revenue has not disputed the factual matrix brought out by Ld. Representative for the assessee. 7. In view of the aforesaid factual matrix, the plea of the assessee, based on the judgement of the Hon'ble Bombay High Court in the case of CIT vs. Universal Medicare Pvt. Ltd.(supra) is liable to be upheld, thereby resulting in deletion of an addition of Rs. 28,74,875/- in the hands of the assessee company. Accordingly, we set aside the order of CIT(A) on this aspect and direct the Assessing Officer to delete the addition of Rs. 28,74,875/- made in the hands of the assessee on the ground that such dividend could not be taxed in the hands of the assessee as it is not a shareholder in M/s. Tainwala Holdings Pvt. Ltd. Thus, in so far as G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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