2010 (1) TMI 1243

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....tesh Joshi/Rajnikant Chaniyari/Dharini Shah ORDER J. Sudhakar Reddy (Accountant Member) This is an appeal filed by the Revenue directed against the order of the CIT(Appeals)-VII, Mumbai dated 24-10-2008 on the following ground : "On the facts and in the circumstances of the case and in law, the CIT(A) erred in directing the Assessing Officer to delete the addition of ₹ 4,42,00,000/- mad....

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....on to issue equity shares and preference shares and hence it was reflected under the head "Share application money" in the assessee's audited balance sheet. The assessee states that in the assessment order the AO erroneously stated that the assessee company was the registered share holder of Optimum Stock Trading Co. Pvt. Ltd. which is holding 10% of the voting power, whereas the fact is that the ....

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....lusive nature and he treated the amount as a deemed dividend as per provision of section 2(22(e) of the Act. 2.1 Aggrieved, the assessee carried the matter in appeal. The first appellate authority applied the decision of the Delhi Bench of the Tribunal in the case of Ardee Finvest (P) Ltd. 79 ITD 547 (Del.) and on facts came to a conclusion that the amount received by the assessee is share applic....

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....st appellate authority, in our considered opinion, had correctly dealt with a matter and held that share application money cannot be deemed to be loan or deposit. Further, he rightly observed that the AO without any basis has stated that the assessee was a habitual borrower. He held that the issue is squarely covered in favour of the assessee and against the Revenue by the decision of the Delhi Be....