2017 (11) TMI 322

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....as challenged disallowance under Section 2(22)(e) of the Income-tax Act, 1961 amounting to Rs. 2,84,87,233/- in assessment year 2011-12 and Rs. 6,37,55,557/- in assessment year 2012-13. 3. At the time of hearing before us, it is submitted by the learned counsel that the assessee is a major shareholder in the following companies :- Sr.No. Name of company Nature of business Assessee shareholding (in %) i) Superior Ltd. Films     (P) Interest income and renting of property 26.91 ii) Superior Clothing (P) Ltd. Manufacturer and Exporter of readymade garments 40.9 ....

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.... Officer has made huge additions for deemed dividend u/s 2(22)(e) while the fact remains that no loan is received by the assessee which can be treated as deemed dividend. He further stated that the transactions between M/s Superior Films (P) Ltd. and other group companies were business transactions because interest was duly charged by M/s Superior Films (P) Ltd. on the money advanced to these concerns during the normal course of business and such interest income was offered to tax in the hands of M/s Superior Films (P) Ltd. He pointed out that M/s Superior Films (P) Ltd. received interest amounting to Rs. 78,51,725/- from M/s Superior Clothing (P) Ltd. and Rs. 29,650/- from M/s Superior Crafts (P) Ltd. during the assessment year 2011-12 and....

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....at length and has rightly sustained the addition on account of deemed dividend. 7. We have carefully considered the contentions of both the sides and perused the material placed before us. We find that at page 4 of the assessee's written submissions, he has given a chart pointing out the interest income received by M/s Superior Films (P) Ltd. in the years under appeal as well as in the preceding and subsequent years. This chart gives the details of interest received from the group concern as well as others. For ready reference, the same is reproduced below :- Sr.No. A.Y. Interest received from Superior Clothing Interest received from Superior Craft Interest received from other p....

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....; AY 2012-13 vii) 2013- 14 3,91,85,297 2,53,643 88,69,752 4,83,08,692 1,83,37,728 6,66,46,420 143(3) Pages 191- 192            of paper book for            AY 2011-12 viii) 2014- 15 3,66,45,585 -- 1,09,86,305 4,76,31,890 1,20,66,381 5,96,98,271 143(3) ix) 2015- 16 4,39,68,508 -- 2,24,02,759 6,63,71,267 1,53,01,200 8,16,72,467 143(1) x) 2016- 17 2,86,31,756 -- 2,57,....