ASSISTANT COMMISSIONER OF INCOME TAX, CENRTALCIRCLE-1, VISAKHAPATNAM vs. VIJAYNAGAR FOOD AND NUTRACEUTICALS PVT LTD, VISAKHAPATNAM
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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
per section 2 (32) of the Act below:
6 "person who has a substantial interest in the company", in relation to a company, means a person who is the beneficial owner of shares, not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits, carrying not less than twenty per cent of the voting power ;
In view of the above definition, in the instant case Shri Datla
Ranga Raju owns 19.05% of the shares in M/s. Vijaynagar
Biotech Private Limited (VBL) which is below the prescribed limit
of 20% in order to have substantial interest in a company. The
ground raised by Revenue on Explanation 3(b) to section 2(22)(e)
refers to a concern other than a company and hence not relevant
for the instant case. We therefore find that there is no
requirement to interfere in the order of the Ld. CIT(A) on this
ground. Accordingly the appeal of the Revenue on this ground is
dismissed.
Ground No.2 with respect to legal issue raised by the
Revenue, since the appeal is adjudicated on merits against the
Revenue, this legal issue need not be adjudicated.
Ground Nos. 1 & 4 are general in nature and needs no
adjudication.
In the result, appeal of the Revenue is dismissed.
7 10. Cross Objection raised by the assessee is supportive in nature and therefore the adjudication of the CO becomes infructuous. Pronounced in the open Court on the 29th March, 2023.
Sd/- Sd/- (दु�वू� आर.एल रे�डी) (एस बालाकृ�णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) �या�यकसद�य/JUDICIAL MEMBER लेखा सद�य/ACCOUNTANT MEMBER Dated : 29.03.2023 OKK - SPS आदेश क� ��त�ल�प अ�े�षत/Copy of the order forwarded to:- �नधा�रती/ The Assessee – M/s. Vijaynagar Food and Nutraceuticals 1. Private Limited, 9-29-15/7, 3rd Floor, Padmavathi Towers, Balaji Nagar, Upstairs Canara Bank Regional Office, VIP Road, Siripuram, Visakhapatnam, Andhra Pradesh – 530003. राज�व/The Revenue – Assistant Commissioner of Income Tax, Central 2. Circle-1, 5th Floor, Direct Taxes Building, Sector-8, MVP Double Road, Visakhapatnam, Andhra Pradesh-530017. 3. The Principal Commissioner of Income Tax, आयकर आयु�त (अपील)/ The Commissioner of Income Tax (Appeals)-3, 4. Visakhapatnam. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, �वशाखापटणम/ 5. DR, ITAT, Visakhapatnam गाड� फ़ाईल / Guard file 6. आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
