The DCIT, Circle-8, Ahmedabad vs. Seasons Hotel Pvt.Ltd., Ahmedabad
In the result, the appeal is dismissed
ITA 2051/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad23 Oct 2017AY 2011-12
Bench: Us, I.E. Seasons Hotels Pvt Ltd, Is Not A Shareholder In Inder Hotels Pvt Ltd. Yet, The Assessing Officer Treated Inter Corporate Loan From Inder Hotels Pvt Ltd, To The Extent Of Accumulated Profits Of Rs.99,50,273/-, As Deemed Dividend On The Ground That “The Assessee Company Has Received Loan From The Company Having Substantial Interest In The Company”. Even The Tribunal’S Decision In Favour Of The Assessee, On The Same Issue, Were Held To Be “Unacceptable”, As The Same Not Have Been Accepted By The Revenue Authorities. However, When Matter Travelled In Appeal Before The Cit(A), He Reversed The Action Of The Assessing Officer & Observed As Follows:- Dcit V/S Seasons Hotels Pvt Ltd Assessment Year: 2011-2012 Page 2 Of 3
Section 2(22)(e)
…ny is not the registered shareholder of the lender company, therefore the addition made by AO in the hands of appellant co. is bad in law Hon’ble ITAT and my predecessors have relied upon the decisions in following cases:- (a) DCIT vs. Lakra Bros, reported in 106 TTJ 250 (b) CIT vs. Rajkumar reported in 23 DTR 304 (c) Bharat C Gandhi vs. ACIT reported in 178 Taxman 83 Respectfully following the decision of jurisdictional ITAT in appellants own case and the decisions of earlier CIT(Appeals) the addition of Rs.99,50,273/- as deemed dividend income, is ordered to be deleted.” 3. The Assessing Officer is aggrieved a…
