2013 (6) TMI 854

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....PER JOGINDER SINGH, judicial member The only ground taken by the Revenue in this appeal is that the learned CIT(A) was not justified in deleting the addition made on account of treating the advances of Rs. 1,29,81,002/- received from sister concern as deemed dividend u/s 2(22)(e) of the Act. 2. During hearing, we have heard Smt. Mrudula Bajpai, learned CIT DR and Shri Vijay Bansal, learned c....

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....iced that the assessee was having major share holding in the said company by holding 45% shares. It was further noticed that huge payments have been made to the assessee by M/s Vipro Exims Pvt. Ltd. more specifically when there was sufficient reserve and surplus in the balance sheet. In the notice the assessee was asked as to why the accumulated profit may not be treated as deemed dividend u/s 2(2....

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....ssee is a beneficial share holder in M/s Vipro Exims Pvt. Ltd. having 45% of share holding but the fact remains that the amount so advanced by M/s Vipro Exims Pvt. Ltd. is neither loan nor advance. These are merely routine business transactions. The trade advances, therefore, will not fall within the definition of deemed dividend u/s 2(22)(e) of the Act. Undisputedly right from assessment stage it....

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....in the ambit of section 2(22)(e) of the Act. Our view is supported by the decision from Hon'ble Delhi High Court in CIT vs. Ambassador Travels Pvt. Ltd.; 318 ITR 376, CIT vs. Rajkumar; 318 ITR 462 and CIT vs. Creative Dyeing and Printing Pvt. Ltd. (2009) 318 ITR 476 (Del). While coming to this conclusion, the Hon'ble Delhi High Court in the case of Creative Dyeing and Printing Pvt. Ltd (supra), fo....