9911796707
TMI Blog2016 (7) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... nterfere with the views taken by the learned Tribunal. - Decided against revenue - ITA 23 of 2009 - - - Dated:- 13-7-2016 - Girish Chandra Gupta And Arindam Sinha, JJ. For Appellant/Petitioner : Mr. Nizamuddin, Advocate For Respondent : Mr. N. K. Poddar, Sr. Advocate ORDER The Court : This appeal is directed against a judgement and order dated 8th August, 2008 passed by the learned Income Tax Appellate Tribunal, A Bench, Kolkata in ITA No.73/Kol/2008 pertaining to the assessment year 2004-05 by which an appeal preferred by the revenue was dismissed. The aggrieved, the revenue, has come up in appeal. The following question of law was formulated on 1st April, 2009 when the appeal was admitted : Whether the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may rightly be contended, included the accumulated profit of ₹ 18,36,454/- . The balance sum admittedly was from out of the share premium account. Unless the payment is made from out of accumulated profits the payment does not partake the character of deemed dividend, as would appear from Section 2(22)(e), from a plain reading thereof for which no elaboration is required. The question still remains as to whether Pushpak Commercial Finance Pvt.Ltd. can be said to have lent a sum of ₹ 18,36,454/- from out of the accumulated profits. That question has been answered in the negative by the learned Tribunal by relying on the exceptions provided under Clause (e) of subsection 22 of Section 2. The relevant exception is as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Strength has also been drawn on behalf of the assessee from clause (b) of Explanation 3 to Section 2(22) which lays down that a person shall be deemed to have a substantial interest in a concern other than a company if he is at any time during the previous year beneficially entitled to not less than 20% of the income of such concern. Inviting attention to Section 13(3)(b) of IT Act it was submitted that the word substantial contribution has been defined to mean upto the end of the relevant previous year exceeding ₹ 50,000/-. However, without getting into the references to Substantial made in the said section or other sections of the Act which may be in a different context the legislative intent interpreted by the CIT(A) being no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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