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TMI Blog2020 (2) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed date i.e. 1.4.2016. We deem it fit and proper to admit the additional evidence and remand the same to the file of the AO for de novo consideration in accordance with law, particularly, the contention of the assessee that the advances from VHDL were received in the financial year 2011-12. Similarly, with regard to the advances of ₹ 1.00 crore from GHCL to the assessee also, the AO may re-examine the issue i.e. the period of receipt of income, whether it had accumulated profits during the relevant period and whether it was for commercial expediency as claimed by the assessee. Assessee s appeal is treated as allowed for statistical purposes. - ITA No.1417/Hyd/2017 (Assessment Year: 2013-14) - - - Dated:- 22-1-2020 - Smt. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to develop a Health City at Visakhapatnam for which A.P. Industrial Infrastructure Corporation Ltd (APIIC) was assigned the responsibility to assign the land to interested parties to set up Multi Speciality Hospital along with an integrated facility of Para Medical College for Nursing Staff. The assessee company, due to its long standing in the health care industry, has strategically applied to APIIC for allotment of land, in order to facilitate its expansion plans and made an investment to the tune of ₹ 10.45 crores and procured the land. Subsequently, Visakha Hospitals and Diagnostics Ltd (VHDL), a 100% subsidiary unit of the assessee had shown interest in setting up the multi speciality hospital in the land proposed to be given by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and advanced the funds to the assessee. Thereafter, he held that the said advances would fall within the definition of section 2(22)(e) of the Act and since the assessee is the major shareholder holding substantial interest in the said companies, the deemed dividend is to be brought to the hands of the assessee. He also observed that the land was not transferred to the subsidiary but the land continued to be in the name of the assessee only and therefore, according to the AO, it is not a case of business transaction or trade advances. Thus, he brought that the entire amount of ₹ 7,06,24,183/- being the advances from VHDL and GHCL to tax. Aggrieved, the assessee preferred an appeal before the CIT (A) who confirmed the order of the AO a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e may be admitted and remanded to the file of the AO for re-adjudication of the issue. 6. The learned DR, on the other hand, supported the orders of the authorities below and submitted that the VHDL had all along shown the advance to the assessee as a loan or advance and not as any trade advance. Therefore, it cannot be treated as the funds advanced for commercial expediency and thus, it is to be taxed as deemed dividend u/s u/s 2(22)(e) of the Act. 7. Having regard to the rival contentions and the material on record, we find from Page 158 of the paper book that the assessee has received a sum of ₹ 6,85,00,000/- on different dates, the last day being 23-01-2012, i.e. within the financial year 2011-12 relevant to the A.Y 2012-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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