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TMI Blog2023 (3) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... ncies of the business. The decision of Ankitech [ 2011 (5) TMI 325 - DELHI HIGH COURT ] relied upon by the Revenue that the assessee entered into normal business transaction as a part of day to day business activity and is a loan / dividend income. The same will not be applicable in present assessee s case. Therefore, the addition made by the AO and the confirmation made by the CIT(A) u/s 2(22)(e) cannot be termed as deemed dividend income and hence is deleted. Appeal of the assessee is allowed. - I.T.A. No. 572/Ahd/2022 - - - Dated:- 15-3-2023 - MS. SUCHITRA KAMBLE , JUDICIAL MEMBER For the Appellant : Shri Sunil Talati, A.R. For the Respondent : Shri Sanjay Jain, Sr. D.R. ORDER The appeal filed by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -13 by the Assessing Officer the above said company has given loan of Rs. 16,00,000/- to M/s. Addpol Chemspecialities Pvt. Ltd. Shri Shamik Dilip Shah holds 12.5% of share holding as on 31.03.2012 in M/s. Monachem Additives Pvt. Ltd. Therefore, the Assessing Officer observed that provisions of Section 2(22)(e) of the Act are applicable in the case of the assessee. The case was reopened under Section 147 and statutory notices were given along with show-cause notice. The assessee through Authorized Representative filed the details and submitted thereby stating that the assessee derived income from salary from M/s. Monachem Additives Pvt. Ltd. as a Director in this company. The Assessing Officer made addition of Rs. 16,00,000/- on account of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersion of funds from one concern to another depending upon the exigencies of the business. The Ld. A.R. relied upon the various decisions which are as follows: (a) M/s. Chandra Cement vs. DCIT 68 TTJ (Jaipur) (b) Hon ble Madhya Pradesh High Court in case of Patiram Jain (c) Muthoot M. George Bankers vs. ACIT (1994) 47 TTJ (Cochin) (d) CIT vs. Ambassador Travels Pvt. Ltd. (2009) 318 ITR 376 (Del. HC) (e) N. H. Securities Ltd. vs. DCIT 11 SOT 302 The Ld. A.R. submitted that the assessee has submitted ITR-V and computation of Shamik Shah for A.Y. 2012-13 submission dated 23.07.2019 reflecting the shareholding in Monachem Additive Pvt. Ltd. and Addpol Chemspecialities Pvt. Ltd. as well as submissions along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord. The assessee is a common shareholder having share in nature at 12.3% in M/s. Manachem Additives Pvt. Ltd. and 50% in M/s. Addpol Chemspecialities to treat it as deemed dividend in the hands of shareholder. The contention of the assessee that the transfer of fund was from and to the sister concerns on need basis for a few days and therefore, receipt and payment of the amount is only for short while depending upon the exigency of the business. The transaction interest between the sister concerns and the assessee cannot partake of the nature of either deposit or loan though interest might have been paid on the same. It only represents giving funds from one concern to another depending upon the exigencies of the business. The decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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