Case Law Details
Yogesh Mehra Vs DCIT (ITAT Mumbai)
Co-ordinate Bench has given categorical finding that all these loans and advances given to different companies by other companies are in the nature of loans and advances out of commercial consideration and business expediency. The co-ordinate Bench has given detailed reasons which stated that company has purchased land in the name of related companies for the purpose of setting up Wind farm and therefore, there is loan and advances in the land holder companies for business purposes. While holding so, the co-ordinate Bench also relied on several judicial precedents as well as CBDT Circular No. 19/2017 dated 12.06.2017.
Further, following the same decision of co-ordinate Bench in assessee’s own case for AY 2012-13, ITAT has also deleted the identical addition.
The learned Departmental Representative could not show us any reason that how those decisions are not applicable in case of assessee for this year. Further, the CBDT has also taken a view vide CBDT Circular No. 19/2017 dated 12.06.2017 stating that where loans and advances are in the nature of commercial transactions, would not fall within the ambit of word ‘ advance’ in section 2(22) (e) of the Act. In view of the above facts, respectfully following the decision of co-ordinate bench in assessee’s own case for earlier years as well as circular of CBDT, we hold that the addition made of Rs. 1,60,50,281/- in the hands of the assessee on substantive basis is not sustainable. Therefore, the orders of the lower authorities are reversed and Assessing Officer is directed to delete the deemed dividend under section 2(22)(e) of the Act.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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