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TMI Blog2017 (11) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... shareholder. There is a transaction of advancing of money by M/s Superior Films (P) Ltd. to the group concerns in the normal course of business. In view of the above as well as CBDT’s Circular No.19/2017, Section 2(22)(e) is not applicable in the facts of the case under appeal before us. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the Assessing Officer has made huge additions for deemed dividend u/s 2(22)(e) while the fact remains that no loan is received by the assessee which can be treated as deemed dividend. He further stated that the transactions between M/s Superior Films (P) Ltd. and other group companies were business transactions because interest was duly charged by M/s Superior Films (P) Ltd. on the money advanced to these concerns during the normal course of business and such interest income was offered to tax in the hands of M/s Superior Films (P) Ltd. He pointed out that M/s Superior Films (P) Ltd. received interest amounting to ₹ 78,51,725/- from M/s Superior Clothing (P) Ltd. and ₹ 29,650/- from M/s Superior Crafts (P) Ltd. during the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) has discussed this issue at length and has rightly sustained the addition on account of deemed dividend. 7. We have carefully considered the contentions of both the sides and perused the material placed before us. We find that at page 4 of the assessee's written submissions, he has given a chart pointing out the interest income received by M/s Superior Films (P) Ltd. in the years under appeal as well as in the preceding and subsequent years. This chart gives the details of interest received from the group concern as well as others. For ready reference, the same is reproduced below :- Sr.No. A.Y. Interest received from Superior Clothing Interest received from Superior Craft Interest received from other parties Gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions, the assessee has given the transactions between M/s Superior Films (P) Ltd. and other group concerns, from which, it is evident that there were several transactions of the payment and receipt of the money during the years under appeal. Considering the totality of above facts, we have no hesitation to hold that M/s Superior Films (P) Ltd. used to advance the money for earning interest income to various concerns which included group concerns also. The advancing of money was a regular course of business for M/s Superior Films (P) Ltd., not only in the years under appeal but also in the preceding as well as subsequent years. In view of the above, we have no hesitation to hold that advancing of money by M/s Superior Films (P) Ltd. to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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