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TMI Blog2017 (4) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... substantial business of the said firm, the amount was not liable to be taxed as deemed dividend. - Decided in favour of assessee. - INCOME TAX APPEAL No. 82 OF 2016 - - - Dated:- 3-3-2017 - SMT. VASANTI A. NAIK AND V.M. DESHPANDE, JJ. Shri Anand Parchure, Advocate for the Petitioner. Shri L.S. Dewani, Advocate for the Respondent. By this income tax appeal, the appellant Revenue challenges the order of the income tax appellate Tribunal, Nagpur dated 17th June, 2016 dismissing the appeal filed by the Revenue and confirming the order of the Commissioner of Income tax (Appeals). The respondent assessee is a partner in the firm M/s. B.K. Industries and is having 60% share in the said firm. M/s. B.K. Industries had secured a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals were dismissed by the Tribunal by separate orders. The Revenue has filed an appeal against the order passed by the Tribunal in the case of M/s. B.K. Industries and this Court has admitted the appeal by framing five substantial questions of law. The present appeal is filed by the Revenue against the order of the Tribunal in the case of the assessee. Shri Anand Parchure, the learned counsel for the Revenue submitted that since the appeal filed by the Revenue is admitted against the firm M/s. B.K. Industries, this appeal also needs to be admitted on the substantial question of law whether the Tribunal and the Commissioner of Income Tax appeal had erred in deleting the addition of ₹ 1,45,84,276/being deemed dividend under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, this appeal may not be admitted. It is stated that the appeal against M/s. B.K. Industries is admitted on five substantial questions of law, whereas in the present case, only one substantial question of law is sought to be raised that relates to the levying of the tax on the amount, as deemed dividend. It is submitted that for the relevant year 2009-10, out of the total income of M/s. Speedex Trade World Private Limited of ₹ 78/lakhs, ₹ 28/lakhs was received by M/s. Speedex Trade World Private Limited towards interest. It is submitted that for the previous assessment year also, in the total income of ₹ 55/lakhs, ₹ 14/lakhs constituted the income towards interest. It is then submitted by taking this court through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is further not in dispute that for the relevant assessment year, out of the total income of ₹ 78/lakhs, M/s. Speedex Trade World Private Limited had secured an amount of ₹ 28/lakhs towards interest. It is further not in dispute that during the previous assessment year, out of the total income of M/s. Speedex Trade World Private Limited of ₹ 55/lakhs, ₹ 14 lakhs constituted, the income from interest. On a reading of the memorandum of association of M/s. Speedex Trade World Private Limited and on a consideration of the aforesaid factual position, it appears that the Tribunal as well as the Commissioner of Income Tax (Appeals) rightly held that financing was the substantial business of M/s. Speedex Trade World Priv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han a couple of businesses, but if financing is a substantial business of the company, it would attract the provisions of Section 2(22) (e)(ii) of the Act. In the circumstances of the case, we do not find any reason to interfere with the findings of facts recorded by the Income Tax Appellate Tribunal. While holding so, we are not inclined to accept the submission made on behalf of the appellantRevenue that since the appeal filed against M/s. B.K. Industries is admitted on substantial questions of law and a substantial question of law raised herein is also one of the substantial questions of law framed in the case of M/s. B.K. Industries while admitting the appeal, this appeal also needs to be admitted. We find that before admitting the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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