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TMI Blog2021 (8) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... t commercial role of two subsidiaries - HELD THAT:- Admittedly there is no dispute as the facts emanating from records the PAPL advanced to AASSPL and in which the assessee is a common significant and beneficiary shareholder. It is amply clear the loan of above said amount has been reached to the AASSPL but not the assessee company. The assessee company being major shareholder we cannot say the loan advanced to PAPL reached the hands of the assessee. Therefore, in our opinion, the addition made by the AO as confirmed by the CIT(A) is not justified, if at all any addition to be made u/s. 2(22)(e) of the Act it should be in the hands of AASSPL as loan amount reached the hands of said entity but not the assessee. Therefore, the invocation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shok Automotive Sales and Services Pvt. Ltd. The assessee filed its submissions which are reproduced by the AO from Page Nos. 3 to 7. The AO found such submissions as not acceptable and treated the above said amount as deemed dividend in terms of provisions of section 2(22)(e) of the Act and added the said sum to the total income of the assessee u/s. 143(3) of the Act vide its order dated 30-11-2016. The CIT(A) confirmed the order of AO. 5. Before us, the ld. DR, Shri Vitthal Bhosale submits that the assessee company is a holding company of Pandit Automotive Ltd. and Ashok Automotive Sales and Services Pvt. Ltd. The assessee has share holding of 50% in Pandit Automotive Ltd. and 92.16% in Ashok Automotive Sales and Services Pvt. Ltd. and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) also considered the issue in detail and held that the said amount cannot be treated as commercial transaction and support itself is in the nature of loan. The ld. DR argued that benefit of passing of loan from PAPL to AASSPL ultimately reached the assessee company by virtue of being common significant and beneficiary shareholder and supported the order of CIT(A). 6. Heard ld. DR and perused the material available on record. We note that as facts emanating from the records that the assessee company has 50% shareholding in PAPL and 92.16% in AASSPL. It is also not disputed during the year under consideration the PAPL made loan of ₹ 4,11,42,307/- to AASSPL. It is also not disputed that the assessee is a common significant and ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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