2021 (4) TMI 868

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....ed to recall the order dated 16.01.2018 passed in Tax Appeal No.1032 of 2017 and be further pleased to decide the issue of addition made u/s 2(22)(e) of the Act on merits;" 2. Learned Senior Counsel Mr.Bhatt has submitted that the present application has been filed only with regard to Question­B pertaining to addition under section 2(22)(e) of the Income Tax Act, 1961 ('the Act' for short). It is submitted that in the present case the opponent - assessee - Gladder Ceramics Limited had received loans and advances from Akik Tiles Limited and Marbolite Granito India Limited and the Assessing Officer treated the said loans and advances as deemed dividend under section 2(22)(e) of the Act, however, the CIT (Appeals) as well as the....

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....al owner of shares holding not less than ten percent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits. In the present case, the assessee has not made any payment by way of advance or loan to a shareholder, but on the contrary, has received a loan from Akik Tiles Pvt. Ltd. and Marbolite Granito India Ltd. Therefore, if at all the provisions of section 2(22)(e) of the Act were applicable, it would be applicable to the companies who have made such payments, provided the assessee had....

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....dend. The present review application is only confined to Question­B raised by the applicant in the captioned Tax Appeal. The same reads as thus: "Whether the Appellate Tribunal erred in law on facts in deleting the addition of Rs. 97,56,376/­ ?" 7. It appears that the observations made in Paragraph No.6 of the order dated 16.01.2018 to the effect that the assessee having not made any payment by way of advance or loan to a shareholder, but on the contrary, has received a loan from Akik Tiles Limited and Marbolite Granito India Limited and hence, the provision of section 2(22)(e) of the Act will not apply since the assessee is recipient of such amount appears to be erroneous. 8. The order dated 19.02.2018 passed by the ....