2020 (9) TMI 1321

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.... ORDER PER S. S. GODARA : This assessee's appeal for assessment year 2013-14 arises against the Commissioner of Income-tax (Appeals), Ranchi's order dated 02.01.2018 passed in case No. CIT(A),Ranchi/10094/2016-17 involving proceedings u/s 143(3) of the Income Tax Act, 1961; (in short 'the Act'). Heard both the parties. Case file perused. 2. The assessee's sole substantive grievan....

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....ts sister concern M/s. Republic Tractor Motor Pvt. Ltd. in the form of Hand Loan which was received back on 13.06.2012 through cheque and the account was squared off. Thereafter on 18.06.2012 a sum of Rs. 2,00,000/- was again received from its sister concern M/s. Republic Tractor Motor Pvt. Ltd. in the form of Hand Loan against which Rs. 4,76,414/- was paid on 30.09.2012. Thereafter on 1....

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......by way of advance or loan to a shareholder,......" [5.16] Considering the above, and in terms of the provisions of 251(1)(a) r.w.s. 251(2) of the Act, the amount deemed to be dividend u/s. 2(22(e) of the Act is taken at Rs. 18,76,414/- in place of Rs. 16,00,000/- added by the Ld. Assessing Officer leading to enhancement of Rs. 2,76,414/-." 3. Learned authorized represe....

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....maceuticals and Chemicals Ltd. and Pradip Kumar Malhotra vs. CIT (2011)338 ITR 538(Cal) and decision in 2019-TIOL-1354-ITAT-DEL DCIT vs. Shri Amit Kumar Jain hold that the impugned deeming fiction does not come into play in the case of a running account involving group entities meeting day to day business exigency(ies) with each other's funds. We therefore hold that both the learned lower authorit....