TaxTMI 
TaxTMI 
2015 (11) TMI 585
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....filed a petition explaining the reason that there was a postal delay in receiving appeal papers and delay in filing of appeal is neither wanton nor willful and therefore prays for condonation of delay. We have perused the reasons and are satisfied that there is a reasonable cause for the delay in filing of the appeal. In the interest of justice, we condone the delay in filing of the appeal. The petition for condonation of delay is allowed and the appeal is admitted. 3. The only grievance of the Revenue in its appeal is that Commissioner of Income Tax (Appeals) erred in holding that payments made by the company to the assessee firm represent trade advance and provisions of deemed dividend under section 2(22)(e) of the Act are not attracte....
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....ncome Tax (Appeals) after considering the submissions of the assessee and the remand report submitted by the Assessing Officer concluded that transactions between the assessee firm and the company M/s. Rajasekar Spintex P.Ltd. are for purchase of cotton yarn in the course of carrying on assessee's business. The Commissioner of Income Tax (Appeals) further held that details furnished by the assessee and the remand report establish that the amounts received are commercial transactions and adjusted then and there and also against subsequent payments/receipts for yarn purchase bills and cotton and waste cotton sales from the company. The Commissioner of Income Tax (Appeals) further held that assessee firm is not a shareholder of the lender comp....
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....lour P.Ltd.. (supra). Therefore, he pleads for sustaining the order of the Commissioner of Income Tax (Appeals). 9. Heard both sides. Perused orders of lower authorities. The Assessing Officer while completing the assessment made addition of Rs. 85,78,000/- representing amounts received by the assessee as deemed dividend under section 2(22)(e) of the Act and assessed as income from other sources, rejecting the contentions of the assessee that receipts are only trade advances received in the course of carrying on the business with the company. The Commissioner of Income Tax (Appeals) in the course of proceedings after considering elaborate submissions of the assessee and called for remand report from the Assessing Officer and after examin....
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....med dividend. An analysis of the same shows that these decisions are applicable to the facts in the instant case. The case laws relied by the AO in the remand report are very old and also not on the identical facts. Appellant in its reply dated 24th April 2015 ( discussed earlier) argued that these are not applicable to the facts on hand. Therefore it is held that the receipts represent trade advance and not a loan/advance within the meaning of deemed dividend u/s 2(22)(e). Therefore provisions of deemed dividend u/s 2(22) (e) are not applicable. The addition made under this head is deleted." 10. The Commissioner of Income Tax (Appeals) further held that assessee firm is not a shareholder in the lender company and deemed dividend can be ....