Case Law Details
CIT Vs. M/s Prasidh Leasing Limited (Delhi High Court)
1. The following questions of law arise in this appeal:
“1. Whether the Tribunal was right in holding that the advance of a sum of 6.16 crores made by M/s Ginza Industries Ltd. to the assessee cannot be taxed as deemed· dividend without returning a finding that the lending of money was the substantial part of the business of the said company (M/s Ginza Industries Ltd);
2. Whether the Tribunal was right in holding that the Assessing Officer had wrongly made dis allowance of 43.50 paid by the assessee to M/s Adani Associates towards guarantee commission fee;
2. In this appeal under Section 260A of the Income Tax Act, 1961 (hereafter referred to as “the Act”), the Revenue is aggrieved and challenges the order of the Income Tax Appellate Tribunal (“ITAT”) which held that amount of ` 6.16 crores which the assessee received from M/s Ginza Industries Ltd. (“Ginza”hereafter) could not be taxable as deemed dividend under Section 2 (22) (e) of the Act. ITAT too held that the assessee was entitled to deduction of ` 43.50 lakhs paid as guarantee fee to M/s Adani Associates (hereinafter referred to “Adani”) for advance received from Ginza.
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