9911796707
TMI Blog2018 (1) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... and such amount should be for the benefit of the shareholder and the company should have sufficient reserves. In the instant case, it is established that the payment of ₹ 35 lakhs by cheque No.685243 was towards the consideration for purchase of flat from M/s. Vijetha Constructions by M/s. First Tek Pvt. Ltd and none of the conditions or clauses discussed above are applicable in the case of the assessee - benefit out of payment made to M/s. Vijetha Constructions by M/s. First Tek Pvt. Ltd, hence, no case for holding the amount as deemed dividend - Decided in favour of assessee. - I.T.A.No.620/Vizag/2014, I.T.A.No.179/Vizag/2015 - - - Dated:- 19-1-2018 - Shri V. Durga Rao, Judicial Member And Shri D. S. Sunder Singh, Accountant Memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 10000. Thus, the assessee is holding more than 10% of the share capital, hence, the A.O. called for explanation from the assessee as to why the loan given to M/s. Vijetha Constructions should not be brought to tax u/s 2(22)(e) of the Act in the hands of the assessee. The assessee explained that M/s. First Tek Pvt. Ltd. had advanced a sum of ₹ 35 lakhs to M/s. Vijetha Foundation and Constructions Pvt. Ltd. for purchase of property and as a precautionary measure, a pro note was executed in favour of the assessee by M/s. Vijetha Constructions and no monetary transaction was exchanged between the assessee and M/s. Vijetha Constructions in respect of ₹ 35 lakhs. Hence, submitted that there is no case for treating the said sum as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n her hands as deemed dividend. The Ld. D.R. further submitted that it is established that the said loan was given to M/s. Vijetha Constructions under instructions from the assessee and hence pro note was in the name of Smt. Sriram Satyavathi. Therefore, the Ld. D.R. argued that the A.O. has rightly made the addition, which required to be upheld. 5. On the other hand, the Ld. A.R. relied on the orders of the Ld. CIT(A). 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. During the search in the group cases of Bhavanasi Anjaneyulu, a promissory note for an amount of ₹ 35 lakhs drawn in favour of the assessee was found and seized, which was drawn by M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heque No.685243 dated 28.11.2007 drawn on ING Vysya Bank Ltd. from M/s. First Tek Pvt. Ltd. against the agreement of sale for flat No.103, 303 503 in Midas Touch Apartments, Kondapur, Hyderabad vide registered document bearing No.13846/07 dated 28.11.2007. Subsequently, due to financial problems and international recession as well as local and regional issues, M/s. Vijetha Constructions has given cheques and pro notes in the names of the Directors and their family members of M/s. First Tek Pvt. Ltd. towards the security. Subsequently, the company has executed the sale deeds for flat No.303 503 vide document No.3358/09 3359/09 dated 23.7.2009. The fact that the company M/s. Vijetha Constructions has taken the advances for sale of flats ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we uphold the order of the Ld. CIT(A) and dismiss the appeal of the revenue. ITA No.179/Vizag/2015 (A.Y. 2008-09): 7. During the search conducted in the business premises of Bhavanasi Anjaneyulu, group cases on 21.1.2011, a promissory note in favour of the assessee was found in the residential premises of Sri Anjaneyulu and was seized as annexure A/BA/Res.PO-1/01 page 3 dated 14.2.2011. In the promissory note, it was recorded that the amount of ₹ 35 lakhs was paid by cheque No.685243 dated 28.1.2007 drawn on ING Vysya Bank Limited, Madhapur, Hyderabad and the account was related to the M/s. First Tek Pvt. Ltd. in which the assessee is holding 5000 shares out of total shares of 10000. Thus, the A.O. held that the said loan was gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
