ITO 9(3)(1), MUMBAI v. SHRENU IMPEX P. LTD, MUMBAI

ITA 2559/MUM/2010 | 2006-2007
Pronouncement Date: 09-03-2011 | Result: Dismissed

Appeal Details

RSA Number 255919914 RSA 2010
Assessee PAN AAACS6180N
Bench Mumbai
Appeal Number ITA 2559/MUM/2010
Duration Of Justice 11 month(s) 7 day(s)
Appellant ITO 9(3)(1), MUMBAI
Respondent SHRENU IMPEX P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 09-03-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 09-03-2011
Date Of Final Hearing 03-03-2011
Next Hearing Date 03-03-2011
Assessment Year 2006-2007
Appeal Filed On 01-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI VIJAY PAL RAO JM ITA NO.2559/MUM/2010 : ASST.YEAR 2006-2007 THE INCOME TAX OFFICER WARD 9(3)(1) MUMBAI. VS. M/S.SHRENU IMPEX PRIVATE LIMITED SIDDHI GROUND FLOOR PLOT NO.14 15 TH FLOOR KHAR (WEST) MUMBAI 400 052. PAN : AAACS6180N. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.SONGATE RESPONDENT BY : S/SHRI K.P.KAPADIA K.N.SHAH & ASHW IN RUPARELIA O R D E R PER R.S.SYAL AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 25.01.2010 IN RELATION TO ASSESSMENT YEAR 2006-2007 . 2. THE ONLY GROUND IS AGAINST THE DELETION OF ADDIT ION OF RS.67 78 216 MADE BY THE ASSESSING OFFICER BY TREATING IT AS DEEMED DIVI DEND U/S.2(22)(E) OF THE ACT. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSEE OBTAINED UNSECURED LOANS FROM VARIOUS PARTIES INCLUDING SISTER CONCERNS / GR OUP CONCERNS ETC. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAD TAKEN LOAN OF RS.1 61 75 000 FROM ONE COMPANY M/S.SAGAR DARSHAN CONSTRUCTION PRIVATE LIMI TED. IT WAS NOTICED THAT SHAREHOLDERS OF THE ASSESSEE COMPANY NAMELY SHRI PARASHAR L.THAKKAR AND MRS.SHOBHA P.THAKKAR WERE HAVING MORE THAN 20% SHAR E HOLDING IN THAT COMPANY ALSO. IT WAS OPINED THAT THIS AMOUNT WAS LIABLE TO BE CONSIDERED AS TAXABLE DIVIDEND IN THE HANDS OF THE ASSESSEE COMPANY. SINCE THE RE SERVE AND SURPLUS IN THE CASE OF M/S.SAGAR DARSHAN CONSTRUCTION PRIVATE LIMITED WERE AVAILABLE ONLY TO THE TUNE OF RS.67 78 216 THE ASSESSING OFFICER MADE ADDITION TO THIS EXTENT BY TREATING IT AS DEEMED DIVIDEND U/S.2(22)(E) OF THE ACT. THE LEARNE D CIT(A) OVERTURNED THE ITA NO.2559/MUM/2010 M/S.SHRENU IMPEX PRIVATE LIMITED. 2 ASSESSMENT ORDER ON THIS POINT BY RELYING ON THE SP ECIAL BENCH ORDER IN THE CASE OF ACIT VS. BHAUMIK COLOUR (P.) LTD. [(2009) 118 ITD 1 (MUM.) (SB)] . 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD IT IS FOUND THAT BOTH THE SIDES ARE IN AGREE MENT THAT THE FACTS AND CIRCUMSTANCES OF THIS CASE ARE SQUARELY COVERED BY THE SPECIAL BENCH ORDER IN THE CASE OF BHAUMIK COLOUR (P.) LTD. (SUPRA). SINCE THE LEARNED CIT(A) HAS ALSO FOLLOWED THE SAID SPECIAL BENCH ORDER IN DELETING T HE ADDITION IN OUR CONSIDERED OPINION THERE IS NO REASON TO INTERFERE WITH THE S AME. WE THEREFORE UPHOLD THE IMPUGNED ORDER. 4. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 9 TH DAY OF MARCH 2011 . SD/- SD/- (VIJAY PAL RAO) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 9 TH MARCH 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) XX MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.