Case Law Details
ITO Vs GRA Enterprises (ITAT Delhi)
Assessing Officer while framing the assessment notice observed that the assessee had received total unsecured laon expenditure of Rs. 22,21,29,723/-, during the year out of which an amount of Rs. 950,000,00/- was received from M/s Telecare Network India (P), a closely held company having its office at Zen House, 261, Kohinoor Enclave, Western Marg, Saidullajab, New Delhi. The Assessing Officer was of the view that as per share holding pattern profit and loss account and balance sheet of M/s Telecare Network India (P), shows that the assessee company had 37.22% share holding in the equity shares of M/s Telecare Network India (P), as on 31/3/2013. Therefore, the Assessing Officer treating the loan amount of Rs.9,50,000,00/- as deemed dividend u/s 2(22)(e) of the Act and added the same into the income of the assessee.
Assessee submitted that the amount was given for purchasing the share holding. The Assessing Officer has confused itself between the loan transaction and transaction for purchasing the shares.
From investment chart, ledger account of M/s Teleecare Network India Pvt. Ltd., confirmation of account and copy of allotment return submitted during the assessment, it is evident that the appellant has not received any amount / loan from Teleecare Network India Pvt. Ltd and as such there does not arise any question of any addition on account of deemed dividend u/s 2(22)(e) of the IT Act, 1961. Addition of Rs. 9,50,00,000/- made by the A.O is therefore deleted.
FULL TEXT OF THE ORDER OF ITAT DELHI
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