Commissioner Of Income Tax, Bhopal vs. Mr. Arun Sahlot

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ITA/50/2013HC Madhya Pradesh02 May 2017Bench: HON'BLE SHRI JUSTICE S.K. GANGELE2 pages
For Petitioner: Sanjay Lal
AI SummaryDismissed

What did the High Court hold?

The High Court considered the facts in detail and noted that the Income Tax Appellate Tribunal (ITAT) had decided all appeals by a common order. The High Court also observed that the facts and questions of law involved in the present appeal were the same as those in ITA No. 56/2013. Consequently, the present appeal was disposed of in terms of the judgment passed in ITA No. 56/2013. The High Court dismissed the appeal. The reasoning for the dismissal was based on the commonality of issues with another appeal (ITA No. 56/2013) which was decided by the same bench. No specific findings were given on the substantial questions of law as the appeal was dismissed based on the outcome of the other connected appeal. No issue was expressly left undecided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Bhopal against an order of the Income Tax Appellate Tribunal (ITAT). The ITAT had set aside additions made by the Assessing Officer (AO) concerning payments by Raj Homes Pvt. Ltd. to the assessee, Mr. Arun Sahlot, and his proprietary concerns, Arun Associates and Raj Industries. The additions were related to Section 2(22)(e) of the Income Tax Act, 1961, and deemed dividends for Assessment Years 2003-04 to 2006-07. The High Court admitted the appeal on substantial questions of law. The High Court noted that the ITAT had decided all appeals by a common order and that the facts and questions of law in this appeal were the same as in ITA No. 56/2013.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the ITAT was justified in law in setting aside the addition under Section 2(22)(e) made by the AO on account of payments by Raj Homes Pvt. Ltd. to Shri Arun Sahlot and his proprietary concerns, Arun Associates and Raj Industries, with the direction to examine aspects like commercial exigency and terms of the loan, even though these aspects are not relevant under Section 2(22)(e)? 2. Whether on the facts and in the circumstances of the case, the ITAT was justified in law in setting aside the additions on account of deemed dividend in A.Ys. 2003-04 to A.Y. 2006-07 with directions to the Assessing Officer to verify if information regarding deemed dividends was found during the search, even though there is no such requirement under Section 153A? Assessee's contentions were not recorded in the judgment. Revenue's contentions were not recorded in the judgment, other than the fact that they are the appellant and the questions of law were framed based on their appeal.

Which sections of the Income-tax Act were involved?

Section 2(22)(e),Section 153A

AI-generated summary — verify with the full judgment below

HIGH COURT OF MADHYA PRADESH PRINCIPAL SEAT AT JABALPUR (Division Bench: Hon'ble Shri Justice S.K. Gangele & Hon'ble Shri Justice Anurag Shrivastava) ITA No. 50/2013. Commissioner of Income Tax, Bhopal (M.P.) Versus Mr. Arun Sahlot E-3/10 Erera Colony , Bhopal (M.P.) ********** Shri Sanjay Lal, learned counsel for the appellant. Shri Sumit Nema, learned counsel for the respondent. ********** JUDGMENT (Pronounced on 02/05/2017) Per S.K. Gangele J This appeal was admitted vide order dated 17/06/2014 on the following substantial questions of law. “1. Whether on the facts and in the circumstances of the case, the ITAT was justified in law in setting aside the addition under Section 2(22)(e) made by the AO on account of payments by Raj Homes Pvt. Ltd to Shri Arun Sahlot and his proprietary concerns Arun Associates and Raj Industries, with the direction to examine such aspects as commercial exigency of the loan and terms of loan even though aspects are not relevant u/s 2(22)(e)?. 2. Whether on the facts and in the circumstances of the case, the ITAT was justified in law in setting aside the additions on account of deemed dividend in A.Ys. 2003-04 to A.Y. 2006-07 with directions to the Assessing Officer to verify if information regarding deemed dividends was found during the search even though there is no such requirement u/s 153A?.” 2. We have considered the facts in detail. The Income Tax Appellate Tribunal decided all the appeals by a common order. The facts in question of law involved in this appeal are same which were involved in ITA No. 56/2013, hence the present appeal is also disposed of in terms of the judgment passed today in ITA No. 56/2013. The appeal is dismissed accordingly. No order as to costs. 3. Office is directed to place a photocopy of the judgment passed today in ITA No. 56/2013 in the file of this appeal. (S.K. GANGELE) (ANURAG SHRIVASTAVA) JUDGE

JUDGE MISHRA

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