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TMI Blog2019 (11) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... ained the nature of transactions. It is also true that in the balance sheet of the company M/s J.C. Infotech Technologies Ltd, it has been clearly mentioned that the amount of ₹ 1,80,42,924/- was given to the assessee which was in the ordinary course of business. When same evidence were furnished before the ld. CIT(A), after examining them, the ld. CIT(A) was convinced that the transaction was in the ordinary course of business and provisions of section 2(22(e) of the Act do not apply. - Decided in favour of assessee. - ITA No. 4930/DEL/2016 - - - Dated:- 31-10-2019 - Shri N.K. Billaiya, Accountant Member, And Ms. Suchitra Kamble, Judicial Member For the Assessee : Shri Kapil Goel, Adv For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment for the assessment year 2007-08 by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment for 2007-08. 1 have, therefore, reason to' believe that the sum of Rs._ 1,80,42,924/- chargeable to tax has escaped assessment for the 2007-98. Thus, the same is to be brought to tax under section 147/148 of the 1.7. Act. 1961. 5. The ld. counsel for the assessee vehemently submitted that the Assessing Officer has borrowed satisfaction from the Assessing Officer of M/s J.C. Infotech Technologies Ltd. Without examining the reserves and surplus of that company, the Assessing Officer formed a belief that the income escaped assessment without applying his mind. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation based on which the notice u/s 148 of the Act was issued is an information received from another Income tax officer and the same cannot be faulted with. 9. The Hon'ble High Court of Delhi in the case of Sonia Gandhi 407 ITR 594 had an occasion to consider a similar issue. The relevant findings of the Hon'ble High Court read as under: 70. The entire premise of the reassessment notice is that the non disclosure of the taxing event. i.e. allotment of shares ( and the absence of any declaration as to value). Deprived the Assessing Officer of the opportunity to look in to records. In the case of Rahul Gandhi, no doubt the assessment originally completed , was under section 143(3) Had he disclosed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount 1 21 . 6.2006 6 , 000 , 000 /- 2 . 08 . 08.2006 750 , 000 /- 3 08 . 08.2006 450 , 000 /- 4 08 . 08.2006 3 , 00 , 000 /- 5 25 . 08.2006 1 , 400 , 000 /- 6 18 . 09.2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 1,80,42,924/-. 13. The assessee carried the matter before the ld. CIT(A) and strongly contended that the said amount is security deposit against the property let out by the assessee to the company. It was vehemently contended that the said transaction was a business transaction and outside the ambit of section 2(22)(e) of the Act. 14. After considering the facts and submissions, the ld. CIT(A) held as under: 5.1 In find merit in his argument that there is no favour given by the company to the appellant. The amount of ₹ 1.80 crore was paid as a security deposit towards taking on rent the property of the appellant. Except security deposit, no further rent was charged. Looking to the preva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies of mutual current account transactions, which are also not deemed dividend in view of above judicial precedents and hence, total addition confirmed of ₹ 11,23,551/- by the Id. CIT(A) is deleted. In the result, the appeal of the assessee is allowed. In view of above facts and the decision of ITAT (Supra), the AO is directed to delete the addition. 15. Before us, the ld. DR vehemently stated that the contentions of the assessee have not been examined at assessment stage nor it has been examined by the ld. CIT(A) at the appellate stage. It is the say of the ld. DR that the claim of the alleged business transaction is to be examined on facts and, therefore, the matter should go back to the Assessing Officer for verif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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