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TMI Blog2021 (4) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... see. Thus, it appears that the assessee is having substantial interest in the said company. The assessee company is engaged in the business of manufacturing and trading of tiles. It is also noticed that the assessee has also received the loans/advances of ₹ 26,70,709/ from Marbolite Granito India Ltd. The CIT (Appeals) deleted the addition under section 2(22)(e) of the Act of ₹ 97,56,376/ on account of loans and advances received from Akik Tiles Limited and Marbolite Granito India Limited. The provisions of section 2(22)(e) of the Act stipulate of treating such loans/advances as deemed dividend. The observations made in [ 2018 (1) TMI 1079 - GUJARAT HIGH COURT] to the effect that the assessee having not made any payment by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MRS MAUNA M BHATT for the PETITIONER(s) No. NOTICE SERVED for the RESPONDENT(s) No. IA ORDER (PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA) 1. The present application has been filed seeking the following prayer: (A) This Hon'ble Court may be pleased to recall the order dated 16.01.2018 passed in Tax Appeal No.1032 of 2017 and be further pleased to decide the issue of addition made u/s 2(22)(e) of the Act on merits; 2. Learned Senior Counsel Mr.Bhatt has submitted that the present application has been filed only with regard to Question B pertaining to addition under section 2(22)(e) of the Income Tax Act, 1961 ('the Act' for short). It is submitted that in the present case the opponent assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioned Tax Appeal in Paragraph No.6, the Court has held thus: As regards proposed question B , section 2(22)(e) of the Act says that dividend includes any payment by a company by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares holding not less than ten percent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits. In the present case, the assessee has not made any payment by way of advance or loan to a shareholder, but on the contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 2(22)(e) of the Act of ₹ 97,56,376/ on account of loans and advances received from Akik Tiles Limited and Marbolite Granito India Limited. The provisions of section 2(22)(e) of the Act stipulate of treating such loans/advances as deemed dividend. The present review application is only confined to Question B raised by the applicant in the captioned Tax Appeal. The same reads as thus: Whether the Appellate Tribunal erred in law on facts in deleting the addition of ₹ 97,56,376/ ? 7. It appears that the observations made in Paragraph No.6 of the order dated 16.01.2018 to the effect that the assessee having not made any payment by way of advance or loan to a shareholder, but on the contrary, has received a loan fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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