2019 (12) TMI 609

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....the addition of Rs. 3,20,00,000/- made by AO as deemed dividend u/s 2(22)(e) of the Income Tax Act, 1961. 2) The appellant craves to be allowed to add any fresh ground(s) of appeal and / or delete or amend any of the ground(s) of appeal. 3. At the time of hearing, Ld. Sr. DR relied upon the order passed by the Assessing Officer and the Written Submissions dated 20.11.2018 filed by his predecessor Sh. Sridhar Dora, Sr. ITAT, ABench, New Delhi. 4. On the contrary, Ld. Counsel for the assessee relied upon the impugned order passed by the Ld. CIT(A) and stated that the Ld. First Appellate Authority has rightly passed the impugned order dated 27.5.2015 by respectfully following the order of the Ld. CIT(A) passed in the assessment ....

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.... beneficial owners in both the companies i.e. they were having 100% shareholding of Puran Associates Pvt Ltd. And MIs Puran Associates Pvt Ltd was having 99.4% share holding in, M/s Oncguest Laboratories Pvt Ltd. Therefore it was held as deemed dividend u/s 2(22)(e)of the IT ACT. Case laws: (Copy Enclosed) 1. [2012] 21 taxmann.com 543 (Delhi) Hon'ble HIGH COURT OF DELHI Commissioner of Income-tax v. Bharti Overseas Trading Co.* SANJIV KHANNA AND R.V. EASWAR, JJ. IT APPEAL NO. 401 OF 2011 + FEBRUARY 29, 2012 I. Section 2(22) of the Income-tax Act, 1961 - Deemed dividend - Assessment year 2004-05 - Assessee-firm consisted of two partners - They were holding shares in a comp....

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....d shareholder who is also needed to be a beneficial owner of shares, is mutually contradictory - YES: SC" 5.1 After hearing both the parties and perusing the orders passed by the revenue authorities alongwith the written submissions dated 20.11.2019 filed by the Ld. Sr. DR on which Mr. Subhakant Sahu, Sr. DR relied upon, we are of the view that the assessee has filed its original return electronically on 30.9.2011 declaring loss of Rs. 25,40,716/- which was processed u/s. 143(1) of the Act by the Assessing Officer and later the case of the assessee was selected for scrutiny by issuing the notice dated 6.8.2012 u/s. 143(2) of the Act which was served upon the assessee. In response to the notice dated 6.8.2012 the AR of the assessee appear....

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....sessee company. 5.2 During the year under consideration, M/s Puran Associates Pvt. Ltd. has given a loan of Rs. 3,20,00,000/- to the assessee company and as the fact of the case are similar to the immediately preceding year, the amount of loan given by M/s Puran Associates Pvt. Ltd. was considered as deemed dividend in the hands of the assessee company and was added to the income of the assessee company u/s. 2(22)(e) of the I.T. Act and AO completed the assessment u/s. 143(3) of the I.T. Act, 1961 on 28.2.2014. 5.3 Aggrieved by the assessment order dated 28.2.2014, the assessee filed the appeal before the Ld. CIT(A), who vide his impugned order dated 27.5.2015 has allowed the appeal of the assessee and deleted the addition in dispute ....