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TMI Blog2016 (6) TMI 1328X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of Hon'ble Delhi High Court in assessee's own case b. ground No. 2 is relating to confirmation of addition of Rs. 1123602 under section 2 (22) (e) of the income tax act 3. Brief facts of the case is that the appellant is an individual earns income from house property, income from other sources and capital gains. For the year assessee filed his return of income on 20th March 2010 showing total income of Rs. 1947282/-. The Ld. assessing officer framed assessment under section 143 (3) of the income tax act by making 2 additions one on account of deemed dividend of Rs. 11.23 Lacs and another of 52.33 Lacs under the head income from house property. Both these additions were challenged by the assessee before the Ld. CIT (A) who in turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax (Appeals) unsuccessfully. Therefore assessee has preferred this appeal before us on this ground. 5. Ld. AR of the assessee submitted before us that this issue is already decided in favour of the assessee by the decision of Hon'ble Delhi high court wherein it has been held that the though assessee is taking inordinately large sum as interest-free deposit compared to agreed monthly rent but the addition of notional interest thereon is not proper and fair rent must be determined. Therefore he submitted that this ground of appeal is squarely covered in favour of the assessee. 6. The Ld. departmental representative relied on the orders of lower authorities and submitted that this decision has not been accepted by the revenue. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee from the company. In view of this assessee contended that the provisions of deemed dividend does not attract in the case of the assessing as it is current account and business transaction. However ld AO rejected the contention of the assessee and made an addition to the income of the assessee on account of deemed dividend. The matter was carried before the Ld. CIT (A) who confirmed the addition as according to him the companies controlled by the assessee through the shareholding of his minor son. 9. Before us, the Ld. authorized representative repeated the same arguments which were made by assessee before the lower authorities. Ld Departmental Representative submitted that minor is not a shareholder but the real shareholder is the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % or more and therefore such loan amount is not chargeable to tax in the hands of the assessee. Furthermore the submission of the assessee before the lower authorities that it is in the nature of advance rent as whenever the rent is payable by the company to the assessee same is deductible from this amount therefore it partakes the character of advance rent. The Ld. AO has also not categorically stated that this amount is not advance rent and not adjusted subsequently against the rent payable by the company to the assessee. According to us if it is an advance rent then it becomes a business transaction and the provisions of deemed dividend cannot apply to such transactions. In view of this we reverse the finding of lower authorities in conf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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