TaxTMI 
TaxTMI 
2020 (2) TMI 927
X X X X Extracts X X X X
X X X X Extracts X X X X
....tal income at Rs. 24,22,72,410/- and book profit u/s 115JB at Rs. 21,37,43,832/-. During the assessment proceedings u/s 143(3) of the Act, the AO observed that there was a closing balance of loans and advances/payable from related party viz., Visakha Hospitals and Diagnostics Ltd (VHDL) of Rs. 6,06,24,183/- and Ganga Care Hospital Ltd (GHCL) of Rs. 1.00 crore. He observed that these two companies are wholly owned subsidiaries of the assessee. He also observed that the reserves and surplus of VHDL is Rs. 36,56,12,845/-. Since VHDL and GHCL are wholly owned subsidiaries of QCIL i.e. the assessee herein, and there was reserves and surpluses in their hands, the sums advanced by them to QCIL i.e. the assessee herein, AO was of the opinion that s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roposed to be acquired from Maharashtra Airport Development Company (MADC) for setting up a multi speciality hospital at Nagpur and handing it over to Ganga Care. 3. Thus, the contention of the assessee was that these are the funds obtained from the subsidiary companies for strategic investments on behalf of the subsidiaries for which the land was allotted to the assessee company in view of its long standing brand image, but the land will be utilized for setting up multi specialized hospitals under the subsidiary companies only. Therefore, according to him, these are the advances for the business purposes and hence do not fall within the purview of deemed dividend u/s 2(22)(e) of the Act. 4. The assessee relied upon the decision of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t of Rs. 7,06,24,183/- represents deemed income within the meaning of section 2(22)(e) of the I.T. Act and further erred in holding that it represents deemed dividend. 4. Any other ground that may be urged at the time of hearing". 5. The learned Counsel for the assessee, while reiterating the submissions made before the authorities below, has submitted that the assessee has received these funds in the financial year 2011-12, relevant to the A.Y 2012-13 and therefore, it cannot be brought to tax in the A.Y 2013-14. He referred to Page No.158 of the Paper Book wherein the details of the receipts from VHDL are given. Further, he submitted that he is now filing another paper book containing pages 189 to 217 which are additional evidence fi....