2017 (1) TMI 1159

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....ibunal was right in law and on facts in not appreciating the facts contained in assessment order & in holding that the assessee company is not a share holder in Mahavir Rolling Mills Pvt Ltd and no addition could be made u/s 2(22)(e) of the Act, as deemed dividend ? 2.0. The facts leading to the present Tax Appeal in nutshell are as under: 2.1. That the assessee company is engaged in the business of Ship Breaking filed its return of income for AY 200708 declaring total income at Rs. 47,11,510/. The Assessing Officer completed the scrutiny assessment under Section 143(3) of the Income Tax Act by making addition of Rs. 14,02,522/on account of excess interest claimed to be paid to a party covered under Section 40A(2) (b) of the Act and a....

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....e company and the assessee has paid interest to the said Shri K.K. Bansal of Rs. 17,55,132/, the learned Assessing Officer rightly made the addition on account of deemed dividend. It is submitted that therefore, the learned Tribunal has materially erred in deleting the addition made by the Assessing Officer made on account of deemed dividend. Shri Manish Bhatt, learned counsel for the Revenue has heavily relied upon Section 2(22)(e)of the Income Tax Act. 4.0. Heard Shri Manish Bhatt, learned counsel for the revenue. From the orders passed by the Assessing Officer as well as learned CIT(A) and learned Tribunal, it emerges that the assessee company was not the share holder in the company to whom the loan was given. Merely because, one Shri....