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TMI Blog2020 (8) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... under the fiction under section 2(6A)(e) - HELD THAT:- This issue needs factual verification vis-a-vis the applicability of law as pronounced by the Hon ble Jurisdictional High Court (supra.). Double taxation, in any case, is not warranted within the spirit and soul of the Income Tax Statute. Therefore, we set aside the order of the Ld. CIT(Appeals) and restore the matter back to the file of Assessing Officer directing him to consider the judgment of the Hon ble Jurisdictional High Court (supra.) and analyze the same with the facts of the assessee s case and adjudicate the issue in compliance with the principles of natural justice. Appeal of the assessee is allowed for statistical purposes. - ITA No. 2955/PUN/2016 - - - Dated:- 12-3-2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irector in M/s. Enpack Plastics Pvt. Ltd. He holds 50% of the shares of M/s. Enpack Plastic Pvt. Ltd. A survey action u/s.133A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) was conducted in the premises of M/s.Enpack Plastics Pvt. Ltd. on 24.01.2012. During the course of survey, it was found that the director Shri Ashok M. Musale received loans/advances from the company and the same are liable to be treated as deemed dividend u/s.2(22)(e) of the Act. A statement was recorded from Shri Bushan A Musale, son of Ashok Musale in which he admitted that he and his father were unaware of the deemed dividend provisions but however, agreed to pay the tax on the deemed dividend aggregating to ₹ 4,25,45,854/- for the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere are three debit entries of ₹ 2,500 each under dates 6th April, 4th May and 6th June, 1957. The total amount of these three debit entries and the amount of this credit entry are equal and they are really contra-entries. Though the dates of the debit entries are earlier than that of the credit entry, the credit entry shows that it is merely a transfer entry and the remuneration was payable to the assessee at the respective dates of the said debit entries. These three debit entries are in payment specifically of remuneration which had already become payable by the company to the assessee and they are merely a mode of payment. These debit entries are, therefore, not loans and being part of contra-entries should really be excluded and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a loan by the company to the assessee, and, hence, no question of any of them being deemed dividends arises. We have referred to this account of the assessee only as the best available illustration to show how the principles we have stated in this judgment are to be applied. We have referred to the various figures which we have just mentioned without having them properly checked up or worked out and the Tribunal or the revenue authorities, as the case may be, should and will be free to work out the correct position on its own, on the principles mentioned in our judgment and the answers to the questions which we give. In mentioning these figures we have not decided or taken into account any principles of law other than those covered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra.) and on the basis of this judgment submitted that in effect, if additions/disallowances are sustained, the assessee will suffer double taxation. The submission of the Ld. AR also is that this decision was not placed in front of the Assessing Officer for consideration and therefore, the matter needs to be adjudicated in the light of the said decision and the Ld. AR prayed that the matter may be restored back to the file of the Assessing Officer. The Ld. DR has conceded to the prayer made by the Ld. AR of the assessee. 4.1. After hearing both the parties, we are of the considered view that this issue needs factual verification vis-a-vis the applicability of law as pronounced by the Hon ble Jurisdictional High Court (supra.). Doubl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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