2025 (9) TMI 1480

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....tment filed condonation petition for explaining the delay. The Ld. AR did not raise any objection on this issue. Therefore, we condone the delay and admit the appeal for hearing. 3. Brief facts of the case of the assessee is that the assessee filed its return of income for AY 2014-15 declaring total loss of Rs. 60,92,952/-. The case of assessee was selected for scrutiny, notice u/s 143(2) was issued thereafter notice u/s 142(1) along with questionnaire was issued, in response to the notice the assessee appeared and represented his case. The AO after hearing the assessee made following additions: i) Addition of Rs. 4,15,49,879/- on account of loan deduction from Rishi Trading ltd. u/s 2(22)(e ) of the Act. ii) Addition o....

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.... by the assessee. The Ld. A.R submits that the assessee is NBFC duly registered with the Reserve Bank of India and lender company is also NBFC company duly registered in the Reserve Bank of India and main objects of the company is granting loan and advances. The Ld. Counsel further submits that the assessee company is holding 7.9% of the vote right in the said company. The Ld. Counsel of the assessee filed following documents which are as follows: i) Copy of NBFC certificate ii) Copy of share holding pattern of Rishi Trading Company Ltd. iii) Copy of loan confirmation. iv) Copy of final accounts of Rishi Trading company Ltd. v) Copy of memorandum and Article of Association of Rishi Trading Compan....

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....borrowing. The assessee has paid 7% to 10.25% interest on different loan amount received from Rishi Trading Company Ltd. as per ledger account. Now, we have gone through the judgment of Hon'ble Calcutta High Court passed in the case of PCIT vs. Suprabha Industries Ltd. (supra), Hon'ble High Court has held thus: "Section 2(22)(e) of the Income tax Act, 1961- Deemed Dividend (loans and advances to shareholders)- Assessment year 2012-13 - Assessee company received unsecured loan from its group companies during relevant assessment year- Assessing Officer passed assessment order - commissioner set aside assessment order by invoking section 263 on ground that Section 2(22)(e ) would be applicable on loan received by the assessee as same ....