Commissioner Of Income Tax vs. Mr. Arun Sahlot

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ITA/60/2013HC 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 ITAT had decided all appeals by a common order. The substantial questions of law in this appeal were the same as those in ITA No. 56/2013. The Court stated that this appeal would be disposed of in terms of the judgment passed in ITA No. 56/2013. Consequently, the appeal was dismissed. The reasoning for the dismissal, as per the judgment in ITA No. 56/2013, is not provided within this specific order. Therefore, the specific findings on the questions of law, the reasoning, and the ratio decidendi are not recorded in this judgment. The operative direction was the dismissal of the appeal.

What were the facts?

This appeal concerns the Commissioner of Income Tax, Bhopal (the Revenue) challenging an order of the Income Tax Appellate Tribunal (ITAT). The assessee is Mr. Arun Sahlot. The assessment years in question are 2003-04 to 2006-07. The ITAT had set aside additions made by the Assessing Officer (AO) on account of payments by Raj Homes Pvt. Ltd. to the assessee and his proprietary concerns, Arun Associates and Raj Industries. The ITAT also directed the AO to examine aspects like commercial exigency and loan terms, and to verify if information regarding deemed dividends was found during a search, despite these not being requirements under Section 2(22)(e) and Section 153A respectively. The High Court admitted the appeal on substantial questions of law.

What were the issues?

The Tribunal had to decide two 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, 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 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? The Revenue contended that the ITAT erred in directing the AO to examine irrelevant aspects under Section 2(22)(e) and to verify information regarding deemed dividends under Section 153A, as these were not statutory requirements. The judgment does not record specific arguments from the assessee's side regarding these questions.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

1 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. 60/2013. 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 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 2. We have considered the facts in detail. The Income Tax Appellate Tribunal decided all the appeals by a common order. The facts in questions of law involved in this appeal are same which 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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