TaxTMI 
TaxTMI 
2010 (12) TMI 1160
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....f the case, in deleting the addition of Rs. 16,751/- made by the AO u/s 2(24)(x) read with sec. 36(1)(va) of the I.T. Act on account of PF & ESIC. 2. Ld. CIT(A) erred, in law and on the facts and circumstances of the case, in deleting the addition of Rs. 70,00,000/- made by the AO u/s 2(22)(e) of the I.T. Act on account of deemed dividend. 3. Ld. CIT(A) erred, in law and on the facts and circumstances of the case, by accepting additional evidences in violation of rule 46A of the I.T. Rule. 4. Ld. CIT(A) erred, in law and on the facts and circumstances of the case, in deleting the addition of Rs. 6,19,095/- made by the AO on account of under valuation of closing stock. 5. The appellant craves to amend modi....
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....on'ble Delhi High Court in the case of CIT Vs. P.M. Electronics Pvt. Ltd. 177 Taxman 1 (Del.) has deleted the disallowance. 3. We have heard both the parties on this issue and we found that disallowance has rightly been made by ld. CIT(A) as the same is not only in accordance with aforementioned decision of Delhi High Court with the view taken by Hon'ble Delhi High Court has been confirmed by Hon'ble Supreme Court in the case of CIT Vs. Alom Electronics Ltd. 319 ITR 306. Therefore, we dismiss ground no. 1 of the revenue. 4. Apropos ground no. 2 & 3 we found that as per chart described in para 6 of order of CIT(A). M/s Saumya Meattle is only the beneficial owner of the shares but not registered owner as the registered owner of the shar....
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.... 30,100 Same as Col.1 23.12 Gorima P. Ltd. 30,100 Same as Col.1 23.20 Total 1,29,750 The assessee has also clarified that payment for acquisition of these shares has also been made by Saumya Meattle and these shares were held in the name of the assessee company as Saumya Meattle during the relevant period was out of the country." AO has further brought on record that the assessee has provided documentary evidence regarding beneficial ownership of Saumya Meattle by producing copy of documents filed with Registrar of the Company. During the appellate proceedings, AR has reiterated that since assessee company's leg....
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....eficial shareholder than the provisions of sec. 2(22)(e) will not apply. Similarly, if a person is a beneficial shareholder but not a registered shareholder than also the provisions of sec. 2(22)(e) will not apply." 7. In this view of the situation, as factual aspect that assessee company is only a registered shareholder and not beneficial shareholder could not be controverted, we find no infirmity in the order of CIT(A) and respectfully following the aforementioned decision of Spl. Bench it has to be held that addition could not be made u/s 2(22)(e) as the assessee company is not the beneficial shareholder of the other company from whom the assessee had acquired loan. 8. In view of above discussion, ground no. 2 7 3 are dismissed. ....
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....B which states that the closing stock of raw material have been undervalued by Rs. 619,095/- but it has no impact on profit as computed under the Act as explained it Annexure-D. Annexure-D gives details of deviation in valuation of closing stock. It is true that addition was made on the basis of the aforesaid comment in Tax Audit Report without any further clarification from the assessee. During the course of appellate proceedings, the assessee made clarification with reference to certificate of statutory auditor, the contents of which are reproduced here under: The Accounting Standard AS-2 on Valuation of Inventories issued by the Institute of Chartered Accountants of India requires accounting for cost of invento....