2018 (12) TMI 1825

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....is filed by the Revenue against the order of CIT(A)-2, Nashik dated 30.06.2016 for the Assessment Year 2012-13. 2. The grounds raised by the Revenue are as under :- "i) Whether on the facts and in the circumstances of the case, the Ld. CIT(A)-2, Nashik was justified in deleting the addition of Rs. 2,48,73,753/- on account of deemed dividend? ii) Whether the Ld. CIT(A) should h....

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....n of income on 29.03.2013 declaring total income of Rs. 6,35,00,717/-. In the scrutiny assessment proceedings u/s 143(3) of the Act, the Assessing Officer made the said addition of Rs. 2,48,73,753/- u/s 2(22)(e) of the Act relating to "deemed dividend". In the assessment order, the Assessing Officer mentioned that the assessee held 79.17% of shares of the company in M/s Viraj Estates Private Limit....

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....the assessee from the company. 4. During the first appellate proceedings, this issue was adjudicated by the CIT(A) in favour of the assessee relying on the judgment of Hon'ble Calcutta High Court in the case of Pradeep Kumar Malhotra vs. CIT, 338 ITR 538. The operational part given by the CIT(A) in para 10.2 of his order. In the said judgement, the fact of the case is that a shareholder mortgag....

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....d. DR could not file any contrary judgement in force on this issue under consideration. 8. We have heard both sides on this limited issue of invoking the provisions of section 2(22)(e) of the Act in respect of the loans/advances given by the company to the assessee, when the assessee mortgaged his property as a guarantee for the company to take loan of higher amount from the banks. In the proce....