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ACIT, Cirlce-4, Room No. 223, Aayakar Bhavan, Surat V/s. M/s.Shripad Concrete Pvt. Ltd, Office Floor, Ashoka Pavilion, Opp: Kapadia Health Club, New Civil Road, Surat
April, 28th 2014
         IN THE INCOME TAX APPELLATE TRIBUNAL
           AHMEDABAD "D" BENCH AHMADABAD
            ,  Û `'
            ,

            Before Shri D.K.Tyagi, Judicial Member and
                   ^ . .×, Û  
              Shri Anil Chaturvedi, Accountant Member
                ^   ,    ¢ 


                         ITA No. 2662/Ahd/2012
                        Assessm ent Year :2007-08
ACIT, Cirlce-4,                 V/s . M/s.Shripad Concrete Pvt.
Room No. 223, Aayakar Bhavan,         Ltd, Office Floor, Ashoka
Surat                                 Pavilion, Opp: Kapadia
                                      Health Club, New Civil
                                      Road, Surat
                       PAN No. AAICS7708Q
           (Appellant)           ..           (Respondent)


         / By Appellant                 Shri K. C. Mathews, Sr.D.R.
     ×   /By Respondent                 None
       /Date of Hearing                 15.04.2014
       /Date of Pronouncement           24.04.2014




                               ORDER

PER : Shri D.K. Tyagi, Judicial Member
      This is the appeal filed by the revenue against the order of Ld.
CIT(A)-IV, Surat dated. 04-06-2010.

2.    Revenue has taken following effective ground:-

      "1.   On the facts and in the circumstances of the case and in Law,
      the Ld. CIT(A)-IV, Surat has erred in deleting the addition of Rs.
      952573/- made by the AO u/s. 2(22)(2) of the Act."
IT A No . 2 66 2 /A h d/ 1 0     A. Y . 0 7- 0 8
A CIT v s. M / s. S hr i pad Co n cr et e P v t Lt d           Page 2




3.      Brief facts of the case are that during the course of assessment
proceedings AO observed that assessee had obtained the loans of Rs.
38,81,000/- from Sripad ConchemPvt Ltd, a sister company wherein Shri
Shirish Shah, Director was having not less than 10% share holding. He
was also having not less than 20% share holding with the assessee
company. This amount was therefore considered by AO for addition u/s.
2(22)(e) of the Act. Under the similar circumstances, the deemed dividend
of Rs. 35,50,000/- was also taxed during the assessment year of 2006-07.
During the current year, as the accumulated reserves of Shripad Concrete
Pvt Ltd stood at Rs. 45,02,573/-, the addition of Rs. 9,52,573/- was made
after giving credit for amount taxed in assessment year 2006-07.                Ld.
CIT(A) deleted this addition by following his order for assessment year
2006-07 in which addition made under similar circumstances was deleted
by him. The order of Ld. CIT(A) for assessment year 2006-07 has been
upheld by Hon'ble ITAT vide its order dated 28/08/2012 by observing as
under:-




        "6.   We have perused the orders of the authorities below and gone
        through the cases relied upon by the appellant. The Id. A.O. attracted
        the provisions of Section 2(22)(e) of the IT Act on loan of Rs,
        35,50,000/- but the appellant has established that these are business
        transactions. The appellant sold goods of Rs.12,15,513/- to M/s.
        Shripat Conchem P. Ltd. and Rs. 35, 75,975/- to M/s. Shripat
        Construction division of M/s. Shripat Conchem P. Ltd. There were two
        accounts maintained by the appellant, one for financial transaction and
        another for business transaction. The loan amount was partly re-paid
        during the year. If both the accounts are taken together, there is liability
        on the assessee but it was for business necessity of the appellant. It is
        not a loan as envisaged in Section 2(22)(e) of the IT Act. We
        respectfully follow the findings given by the Co-ordinate Bench as
        discussed above as are squarely applicable on the assessee's case.
        There is no merit in the department's appeal. Accordingly, the same is
        dismissed."
IT A No . 2 66 2 /A h d/ 1 0     A. Y . 0 7- 0 8
A CIT v s. M / s. S hr i pad Co n cr et e P v t Lt d     Page 3

In view of the above, the order passed by Ld. CIT(A) for the year under
consideration is also upheld.

4.      In the result, revenue's appeal is dismissed.

 This Order pronounced in open Court on 24.04.2014






           Sd/                                                   Sd/-
   (Anil Chaturvedi)                                       (D.K.Tyagi)
  Accountant Member                                      Judicial Member
a.k.

     / Copy of Order Forwarded to:-
1.  / Appellant
2. × / Respondent
3.    / Concerned CIT
4.  -  / CIT (A)
5.  ,   ,  / DR, ITAT, Ahmedabad
6. [  / Guard file.
                                                            By order/  ,

                                                           / 
                                                         ,  

 
 
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