Case Law Details
Neha Home Builders (P.) Ltd. Vs DCIT (ITAT Mumbai)
Conclusion: Since the transaction between assessee-company and other group concern were in the nature of current account and inter banking account containing both types of entries i.e., receipts and payments and assessee was neither the beneficial nor the registered shareholder of the company, therefore, the amount received from other group concern could not be brought in the purview of loans and advances so as to attract Section 2(22)(e).
Held: Assessee was a company engaged in the business of real estate construction – Builder & Developer. During the year, assessee (NHBPL) received a loan from EIPL which was repaid during the year. AO made addition u/s.2(22)(e) on the ground that EIPL was not lending concern and that voting Power of share holders in both the companies were more than 10% in both company (NHBPL & EIPL). Held: Since assessee was neither the beneficial nor the registered shareholder of the company, the amount so received was not liable to be taxed as deemed. Moreover, the transaction between two group concerns were in the nature of current account and inter banking account containing both types of entries i.e., receipts and payments, the same could not be brought in the purview of loans and advances so as to attract Section 2(22)(e).
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal filed by assessee against the order of CIT(A)-21, Mumbai dated 06/03/2018 for A.Y.2013-14 in the matter of order passed u/s. 143(3) of the IT Act.
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