2018 (9) TMI 218

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.... Chowdhury, Advocate ORDER The Court:-Having heard Mr. Jhunjhunwala, learned Counsel for the assessee-appellant, we admit the appeal only on the following question, which in our opinion involves substantial question of law:- "(i) Whether the Tribunal's decision confirming the amount assessed under Section 2(22)(e) of the Income-Tax Act, 1961 as deemed dividend in the case of the assessee was ....

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.... two incorporated companies as loan during the assessment years covered by such reassessment proceeding. Public is not substantially interested in the two companies. In the opinion of the assessing officer, loans given by the said two corporate entities should have been treated as deemed dividend in the hands of the assessee and the said sum had escaped assessment for the assessment year 2006-07. ....

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...., with different transactions creating mutual obligations. Contention of the assessee is that the aforesaid sums were actually advanced for making travel arrangements for the benefit of the two companies and all three authorities have rejected this argument. This finding is essentially a finding of fact based on evidence and we decline to engage ourselves in the acts of re-appreciation of evidence....

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.... to be added as deemed dividend to the assessee's income but this shall be subject to computation of accumulated profit of the two companies. We, accordingly, remand the matter to the assessing officer for the limited purpose of determining as to whether the sums directed to be added as deemed dividend in his order exceeds the accumulated profit of the respective companies or not. In the event th....