TaxTMI 
TaxTMI 
2023 (5) TMI 1053
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....le perused. 2. The Revenue raises the following substantive grounds in the instant appeal : 1. "The order of the Ld. CIT(A) is contrary to law and on facts and in the circumstances of the case 2. The Ld. CIT (A) grossly erred in deleting the addition made by the A.O. u/s 2(22)(e) of the I.T. Act, 1961 of Rs.1,07,62,848/- instead of confirming the said addition as the assessee tried to colour the loan/ advances by giving name of inter corporate deposits. 3. The Ld. CIT (A) grossly erred in interpreting section 2(22)(e) of the I.T. Act as the basic conditions for treating the transaction as deposit are not satisfied. 4. The Ld. CIT (A) erred in ignoring various facts and its analysis put-forth by the A.O....
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....given our thoughtful consideration to the foregoing rival stands and find merit in the Revenue's arguments. This is for the precise reason that this tribunal's learned coordinate bench in ITA.No.1440/PUN./2015 for assessment year 2012-2013 decided on 11.02.2022, has already reversed the CIT(A)'s identical action deleting the similar addition of deemed dividends representing intercorporate deposits as under : "4. We have heard the rival contentions and perused the material available on record. In the present case, the assessee company namely, M/s.Dhariya Construction Pvt. Ltd. had received loan/advances amounting to Rs.2,93,26,224/- from M/s. Dhariya Infrastructure Development Pvt. Ltd. for which during the assessment year under....
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....Infrastructure Development Pvt. Ltd., it is noticed that the same appears to be running loan account rather than ICD account. There is no deposing documentation, no terms and conditions, no details about the interest, no details of maturity periods and no board resolution of the company for accepting the deposits were placed on record. Hence, it is not possible to infer that the depositor has given the money on his volition in the form of deposit out of his excess fund normally. 4.4 Further, for the purpose of treating the amount as "Inter Corporate Deposit", there has to be availability of funds with the lender which is not out of the borrowed funds. In fact, under the Companies Act, 1956, rules were framed which requires that bef....
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....d before the Ld. CIT(Appeals) or before us. No confirmations on "Inter Corporate Deposit" or Balance Sheet treating the amount of "Inter Corporate Deposit" were filed before us. Further, no terms and conditions were brought to our notice disclosing the nature of the amount received by the assessee company. 4.6 The assessee had filed ledger account of M/s. Dhariya Infrastructure Development Pvt. Ltd. (Inter Corporate Deposit) for the period 1st April, 2011 to 31st March, 2012 wherein various amounts were given by the said M/s. Dhariya Infrastructure Development Pvt. Ltd to the assessee company between 5th April, 2011 to 31st March, 2012 and it appears from Page 21 of the Paper book annexed on record that interest paid on the deposit....
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.... parties. 4.8 In view of the above, we are of the opinion that the amount was in the nature of loan/advances only. Merely by mentioning in the ledger account, it was "Inter Corporate Deposit", the nature and colour of transaction would not changed to "Inter Corporate Deposit" ,as it continues to be loan/advances. Hence required to be taxed for the purposes of deemed dividend. We may rely upon the Jurisdictional High Court in the Durga Prasad Mandelia v. Registrar of Companies [1987] 61 Comp. Cas. 479 (Bom., has noticed the distinction between deposits and loans in the context of section 370 of the Companies Act. The Court held as under : "There can be no controversy that in a transaction of a deposit of money or a loan, a ....