Case Law Details
ACIT Vs Jethanand Thakur Bakshani (ITAT Chennai)
The issue under consideration is whether the advance received towards sale of property falls within the meaning of commercial and business purpose and can be treated as deemed dividend without considering the true nature of the transaction?
ITAT states that, it is clear that the Ld. CIT(A) has examined the nature and scope of the transactions and found that the impugned transactions are towards business and commercial purpose and there is no benefit accruing to the assessee from such transaction. Thus, on the above facts and circumstances , the assessee has clearly established that the impugned transactions are not following within the scope of section 2(22)(e). The Revenue is not able to dislodge such findings recorded by the Ld. CIT(A) by relevant material. Therefore, the case laws relied on by the Ld DR is not of any help to the revenue on the above facts and circumstances of this case. Hence, ITAT do not find any reason to interfere with the order of the Ld. CIT(A). Therefore, ITAT dismiss the Revenue’s corresponding grounds of appeal.
FULL TEXT OF THE ITAT JUDGEMENT
The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals) – 7, Chennai in ITA No. 132/CIT(A)-7/2016-17 dated 30.01.2019 for assessment year 2014-15.
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Very well application of law.