Case Law Details
Anil Nanda Vs DCIT (ITAT Delhi)
the assessee, Shri Anil Nanda was holding substantial shareholding in both these companies, i.e., 65.6% share in M/s Joint Investment Pvt. Ltd. and 27.90% share in M/s GI Power Corporation Ltd. as on 31st July, 2007. We find, the amount of Rs.18.75 crore had been shown under the grouping unsecured loans by both these companies in their balance sheets. Further, while arguing the case of GI Power Corporation Ltd. before the CIT(A), Jammu, the said assessee itself had accepted that it had received loan from M/s Joint Investment Pvt. Ltd. Therefore, we do not find any force in the arguments of the ld. Counsel for the assessee that these are ICDs as per the resolutions and correspondences, etc., since the two concerns are closely related to each other and the transactions are not at arm’s length. It is within their exclusive knowledge as to why they have treated the same as ICDs and argued before CIT(A) Jammu in the case of GI Power Corporation Ltd., as loan. Therefore, the argument of the ld. Counsel that provisions of section 2(22)(e) are not applicable does not hold good. Further, the reliance on the CBDT Circular by the ld. Counsel is also not applicable since the said Circular relates to trade advance whereas in the instant case, it is deposit or loan and not a trade advance. Since the ld.CIT(A) while sustaining the addition has thoroughly discussed the issue and has passed a very reasoned order and has followed the decision of the Hon’ble Delhi High Court in the case of Ankitech Pvt. Ltd. (supra), therefore, we do not find any infirmity in the same. Accordingly, the order of the CIT(A) is upheld on merit of the case also.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the assessee is directed against the order dated 31st March, 2017 of the CIT(A)-32, New Delhi relating to assessment year 2007-08.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
