1985 (12) TMI 106

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....red in deleting the addition of Rs. 40,000 correctly made by the ITO as deemed dividend receive by the assessee from Punjab National Bank." 2. In the accounting year ending on31st March, 1974relevant to the asst. yr. 1974-75, the assessee had surrendered 1000 shares of Punjab National Bank for a total consideration of Rs. 40,000. The said shares had been bought for a sum of Rs. 20,750 and on th....

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....ore the AAC. The latter held following the decision of ITAT Delhi Bench-C in the case of Mr. Justice T. P. S. Chawla (ITA No. 1695/Del/77-78 decided on 27th Feb., 1982) that the sum of Rs. 40,000 was not assessable as deemed dividend income and that the assessee be subjected to tax on short-term capital gains as admitted by it before the ITO. 3. It is in the above mentioned facts that the Depar....

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....Mr. Justice T. P. S. Chawla which was also relating to the asst. yr. 1974-75, the Tribunal had found that the provisions of s. 2 (22)(d) were not satisfied and that the Punjab National Bank did not have any accumulated profits as on 30th Jan., 1974. The facts in the case of Mr. Justice T. P. S. Chawla and the facts in the present case being absolutely similar we would hold that the assessee was on....