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TMI Blog2021 (3) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... 12, 2012 13 and 2013 14 wherein the Bench in Revenue s appeal declined to interfere with the order of the first appellate authority and upheld the same. Consequently, we do not find any infirmity in the order passed by the learned Commissioner (Appeals) by allowing the claim of the assessee. Revenue s appeal is dismissed. - ITA No. 2774/Mum./2019 - - - Dated:- 10-3-2021 - SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN , ACCOUNTANT MEMBER Revenue by : Shri Gurbinder Singh Assessee by : None ORDER PER S. RIFAUR RAHMAN , A. M. The aforesaid appeal has been filed by the Revenue challenging the order dated 20th February 2019, passed by the learned Commissioner (Appeals) 1, Mumbai, pertaining to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 16,11,00,736 Amount of Loan / Advance given to assessee firm ₹ 2,89,21,986 Amounts attracting provisions of section 2(22)(e) ₹ 2,89,21,986 4. From the above, the Assessing Officer was of the view that the amount of loans to the extent of the reserves and surplus available with M/s. Shirdi Chemicals Pvt. Ltd., falls within the ambit of provisions of section 2(22)(e) of the Act and, hence, liable to be taxed in the hands of the assessee under the head Income From Other Sources . The Assessing Officer sought explanation by issuing a specific show cause notice dated 30th November 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he normal course of business activity. Accordingly, the Assessing Officer held that the amounts are clearly falling within the ambit of provisions of section 2(22)(e) of the Act and are liable to be taxed in the hands of the assessee under the head Income From Other Sources . The assessee being aggrieved by the order of the Assessing Officer, filed appeal before the first appellate authority. 5. During the first appellate proceedings the assessee contested the addition under section 2(22)(e) of the Act and the assessee s arguments on this issue were as follows: The AO has erred in understanding the facts of the case. The additions made are in mechanical nature without application of mind. The AO failed to appreciate that, the adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring, neither the respondent assessee nor any of her authorised representatives appeared before us to represent the case. There is no application for adjournment either. Consequently, we proceed to dispose off the appeal after hearing the learned Departmental Representative and on the basis of material available on record. 8. The learned Departmental Representative relied upon the order of the Assessing Officer and submitted that though the recipient of loan or advance by the company is not a shareholder but is a concern in which shareholders are having substantial interest. He submitted that the learned Commissioner (Appeals) has incorrectly interpreted the provisions of section 2(22)(e) even though at least one shareholder holding 30% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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