Shri Ashokkumar H. Rathod, Bhavnagar V. The Income Tax Officer, Ward-1(3), Bhavnagar

ITA 1415/AHD/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8973 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 09-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMIT KR VARMA
• Assessee Lawyers: P B PARMAR
• Keywords: Question of law; Deemed dividend; TDS
• Section: 143(3); 2(22)(e); 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH BEFORE: SHR I SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ASHOKKUMAR H. RATHOD BLOCK NO. 402, ARADHANA TOWER, MEGHANI CIRCLE, BHAVNAGAR PAN: ABJPR3419E (APPELLANT) VS THE IT O , WARD - 1 (3) , BHAVNAGAR (RESPONDENT) REVENUE BY : S H RI SUMIT KR. VARMA , SR. D . R. ASSESSEE BY: SHRI P.B. PARMAR, A.R. DATE OF HEARING : 27 - 06 - 2 019 DATE OF PRONOUNCEMENT : 28 - 06 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2012 - 13 , ARI SES FROM ORDER OF THE CIT(A) - 6, AHMEDABAD DATED 24 - 03 - 2 017 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION OF LD. CIT(A) IN CONFIRMING THE ACTION OF ASSESSING OFFICER IN MAKING AN ADDITION OF RS. 25,60,001/ - AS DEEMED DIVIDEND U/S. 2(22)(E) OF THE ACT. I T A NO . 1415 / A HD/20 17 A SS ESSMENT YEAR 2012 - 13 I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 2 3. T HE FACT IN BRIEF IS THAT ASSESSEE HAS FILED RETURN OF INCOME DECLARING INCOME OF RS. 10 , 57 , 480/ - ON 1 2 T H SEP, 2 012. SUBSE QUENTLY, THE CASE WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT ON 9 TH AUGUST, 2013. THE ASSESSEE IS A PROPRIETOR AND ENGAGED IN THE BUSINESS OF CAST IRON. THE ASSESSE IS ALSO A DIRECTOR AND SUBSTANTIAL SHAR EHOLDER IN COMPANY, M/S. ADHYAS H A KTI ALLOYS PVT. LTD. I.E. 59% . D URING THE YEAR UNDER CONSIDERATION ON VERIFICATION OF RECORD, THE ASSESSING OFFICER HAS NOTICED THAT THE COMPANY H AS GIVEN LOAN TO THE ASSESSEE OF RS. 58 , 86 , 222/ - . THE ASSESSING OFFICER HAS ALSO NO TICED ON VERIFICATION OF THE BALANCE SHEET OF THE COMPANY THAT COMPANY W A S HAVING OP ENING RESERVES AND SURPLUS AT R S. 30 , 16 , 673/ - AND CLOSING RESERVE AND SURPLUS AT RS. 38 , 35 , 334/ - . THEREFORE, ASSESSEE WAS ISSUED SHOW CAUSE TO EXPLAIN WHY NOT THE AMOUNT O F RS. 38 , 35 , 334/ - TO THE EXTENT OF RESERVES AND SURPLUS AVAILABLE WITH THE ASSESSEE COMPANY SHOULD BE TREATED AS DEEM ED DIVIDEND IN THE HAND OF THE ASSESSEE AS PER PROVISION OF SECTION 2(22) (E) OF THE ACT. THE ASSESSEE HAS RESPONDED THAT HE HAS NOT RECE IVED ANY LOAN OR ADVANCES FROM THE COMPANY DURING THE YEAR UNDER CONSIDERATION AND TRANSACTION WAS OF THE NATURE OF ROUTINE BUSINESS TRANSACTION, THEREFORE, NO ADDITION U/S. 2(22)(E) OF THE ACT SHOULD BE MADE. THE ASSESSEE HAS ALSO EXPLAINED THAT ASSESSEE HAD AGREED TO PURCHASE A PLOT OF LAND JOINTLY WITH THE COMPANY WITH EQUAL SHAREHOLDING BY THE ASSESSEE AND THE COMPANY. IT WAS ALSO EXPLAINED THAT THE TOTAL INVESTMENT IN THE PLOT OF LAND WAS TO BE MADE TO THE AMOUNT O F R. 1.30 CRORES. FOR THE SAID PURP OSES, AN ADVANCE OF RS. 5,50,00 0 / - WAS GIVEN BY THE COMPANY WHILE RS. 12 LACS ADVANCE WAS GIVEN BY THE ASSESSEE FOR THE PURCHASE OF THE PLOT OF LAND AND FURTHER AMOUNT OF RS. 50 LACS WAS TO BE RECEIVED FROM THE COMPANY AS ITS SHARE TOWARDS COST OF LAND AN D DEVELOPMENT AT INITIAL STAGE. IT IS ALSO I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 3 STATED THAT THE COMPANY HAD GIVE N UNDER ROUT IN E BUSINESS TRANSACTION RS. 38 , 68 , 580 / - A T T HE END OF EARLIER YEAR. SUBSEQUENTLY, THE COMPANY HAS DECIDED NOT TO PURCHASE THE SHARE OF LAND AND DEVELOPMENT AN D THE CO MPANY HAD WITHDRAWN MORE THAN THE AMOUNT GIVEN FOR SHARE OF PURCHASE OF LAND . THEREFORE , THE ASSESSEE HAS STATED THAT IT WAS PURELY BUSINESS TRANSACTION FOR PURCHASE OF LAND AND DEVELOPMENT WITH THE COMPANY AND PROPRIETARY CONCERN OF TH E ASSESSEE NAMED AD HYAS HAKTI T ECHN O P LA ST, THEREFORE , THE PROVISION OF SECTION 2(22)(E) IS NOT APPLICABLE. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND TREATED RUNNING BALANCE IN THE LEDGER ACCOUNT OF THE ASSESSEE M/S. ADHY ASHAKTI TECHNO PLAST I N THE BOOKS OF THE ASSESSEE TO THE AMOUNT OF RS. 25,60 , 001/ - AS DEEMED DIVIDEND U/S. 2(22)(E) OF THE ACT. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. 5. DURING THE COURSE OF A PPELLATE PROCEEDINGS BEFORE US, THE LD. COUNSEL HAS FILED PAPER BOOK CONTAINING DETAIL AND COPIES OF DOCUMENT FURNISHED BEFORE THE ASSESSING OFFICER AND LD. CIT(A) DURING THE COURSE OF ASSESSMENT ORDER AND APPELLATE PROCEEDINGS. HE HAS VEHEMENTLY CONTENDE D THAT NATURE OF TRANSACTION OF THE ASSESSEE WITH THE COMPANY IN WHICH HE WAS SHAREHOLDER WAS OF COMMERCIAL TRANSACTION WHICH WAS NOT LIABLE FOR ADDITION U/S. 2(22)(E) OF THE ACT. THE LD. COUNSEL HAS ALSO REFERRED PAGE NO. 5 AND 6 OF THE PAPER BOOK CONTAI NING EXTRACT OF THE LEDGER ACCOUNT OF THE COMPANY IN THE BOOKS OF ACCOUNT OF THE ASSESSEE WHICH DEMONSTR ATE THAT DURING THE YEAR UNDER CONSIDERATION ASSESSEE HAS PAID AN AMOUNT OF RS. 98 , 10 , 515/ - AS I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 4 AGAINST AN AMOUNT OF RS. 97 , 50 , 802/ - RECEIVED FROM THE CO M PANY . THE LD. COUNSEL HAS ALSO REFERRED THE DECISION OF CO - ORDINATE BENCH OF THE ITAT, AHMEDABAD VIDE ITA NO. 102/AHD/2012 IN THE CASE OF ITO VS. MEHULBHAI D. ZHAVERI DATED 23 - 12 - 2016 ON SIMILAR FACT AND ISSUE DECIDED IN FAVOUR OF THE ASSESSEE. ON THE O THER HAND, LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF ASSESSING OFFICER AND LD. CIT(A). 6. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. THE ASSESSING OFFICER HAS MADE ADDITION OF RS. 25,60,001/ - U/S. 2(22)(E) OF THE ACT IN RESPECT OF CERTAIN FUNDS RECEIVED BY THE ASSESSEE FROM THE COMPANY CLAIMED AD Y AS HAKTI ALLOYS PVT. LTD. WHEREIN ASSESSEE WAS HOLDING SHARE OF 59%. THE LD. COUNSEL HAS REFERRED THE PAGE NO. 5 & 6 IN THE PAPER BOOK TO DEMONSTRATE THAT THE TRANSACTIO NS WERE TAKEN PLACE FOR THE PURPOSE OF BUSINESS BETWEEN THE ASSESSEE AND THE COMPANY. THE LD. COUNSEL HA S ALSO REFERRED PAGE NO. 7 IN THE PAPER BOOK AS A BOARD RESOLUTION ALLOWING THE COMPANY TO PURCHASE A PIECE OF LAND IN WHICH THE ASSESSEE WAS A 50% CO - OWNER. IN THE PAPER BO OK AT PAGE NO. 9,10,13 & 15 COPIES OF MEMORANDUM OF UNDERSTANDING WAS ALSO PLACED INDICATING THAT ASSESSEE AND THE COMPANY WERE AGREED TO PURCHASE THE LAND AS A 50% SHAREHOLDING OF EACH PARTY. WE HAVE GONE THROUGH THE COPY OF LEDGER ACCOUNT OF THE ASSESSEE IN THE BOOKS OF THE ASSESSEE AND THE EXTRACT OF THE COPIES LEDGER ACCOUNT OF THE COMPANY IN THE BOOKS OF THE ACCOUNT OF THE ASSESSEE IS AS UNDER: - ACCOUNT: ADHYASHAKTI ALLOYS (P) LTD DATE BOOK DOC. NO. PARTICULAR DEBIT CREDIT BALANCE 01/14/11 OPBAL OPENING BALANCE ..... 38,64,580.00 38,64,580.00 (CR) 29/04/11 PAYMT TO B.O.I. - C.C - 320430110000007 75,000.00 37,89,580. 00 (CR) BEING AMTTRANSFERRED THROUGH NET BANKING I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 5 1 2/05/11 PAYMT TO B.O.I. - C.C - 320430110000007 2,50,000.00 35,39,580.00 (CR) BEING AMTTRANSFERRED THROUGH NET BANKING 03/06/11 PAYMT 1 TO B.O.I. - C.C - 320430110000007 2,00,000.00 33,39,580.00 (CR) BEING RTGS TO EVERSHINE ON BEHALF .OF ADHYASHAKT1 ALLOYS PVT. LTD., 08/06/11 RECPT BY B,O.I. - C.C - 320430110000007 3,60,000.00 36,99,580.00 (CR) BEING AMTTRANSFERRED THROUGH NET BANKING 09/06/11 RECPT BY B .O.I. - C.C - 320430110000007 5,00,000.00 41, 99,580. 00 (CR) BEING AMTTRANSFERRED THROUGH NET BANKING 05/07/11 PAYMT TO B.O.I. - C.C - 320430110000007 10,50,000.00 31,49,580.00 (CR) BEING AMTTRANSFERRED THROUGH NE T BANKING 16/07/11 PAYMT TO B.O.I. - C.C - 320430110000007 9,00,000.00 22,49,580.00 (CR) 16/07/11 PAYMT 1 TO B.O.I. - C.C - 320430110000007 16,00,000.00 6,49, 580. 00 (CR) RTGS 16/07/11 PAYMT 2 TO B.O.I. - C. C - 320430110000007 6,49,579.00 1.00 (CR) 16/07/11 PAYMT TO B.O.I. - C.C - 320430110000007 9,00,000.00 8,99, 999.00 (DR) RTGS 20/07/11 RECPT BY B.O.I. - C.C - 320430110000007 2,60,000.00 6,39,999.00 (DR) BEING AMTTRANSFE RRED THROUGH NET BANKING 04/08/11 RECPT BY B.O.I. - C.C - 320430110000007 6,00,000.00 39,999.00 (DR) BEING AMTRECEIVED THROUGH RTGS 16/09/11 RECPT BY B.O.I. - C.C - 320430110000007 4,00,000.00 3,60,001.00 (CR) BEING AMTTRANSFERRED THROUGH RTGS 28/09/11 PAYMT TO B.O.I. - C.C - 320430110000007 1,30,000.00 2,30,001.00 (CR) BEING AMTTRANSFERRED THROUGH RTGS ' \ 12/10/11 RECPT 2378 BY B.O.I. - C.C - 320430110000007 13,00,000.00 15 ,30,001.00 (CR) BEING AMTRECEIVED BY CHEQUE 19/10/11 RECPT BY B.O.I. - C.C - 320430110000007 40,000.00 15,70,001,00 (CR) BEING AMTRECEIVED THROUGH NET I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 6 BANKING 03/11/11 PAYMT TO B.O.I. - C.C - 32043011000000 7 7,00,000.00 8,70,001.00 (CR) BEING AMTTRANSFERRED THROUGH NET BANKING 04/11/11 PAYMT TO B.O.I. - C.C - 320430110000007 4,50,000.00 4,20,001.00 (CR) BEING AMTTRANSFERRED THROUGH NET BANKING 10/11/11 PAYMT TO B.O.I. - C.C - 320430110000007 6,00,000.00 1,79,999.00 (DR) 4 BEING AMTTRANSFERRED THROUGH NET BANKING 23/11/11 PAYMT TO B.O.I. - C.C - 320430110000007 3,00,000.00 4,79,999.00 (DR) BEIN G AMTTRANSFERRED THROUGH NET BANKING ' ACCOUNT: ADHYASHAKTI ALLOYS (P) LTD ~ 3* O DATE BOOK DOC. NO. PAR CULAR DEBIT CREDIT BALANCE 28/11/11 PAYMT TO B.O.I. - C.C - 320430110000007 1,00,000.00 5,79,999.00 (DR) BEING AMT TRANSFERRED 14/12/11 PAYMT TO B.O.I. - C.C - 320430110000007 9,51,088.53 15,31,087. 53 (DR) BEING AMTTRANSFERRED THROUGH RTGS 03/01/12 PAYMT 6925 TO B.O.I. - C.C - 320430110000007 15,000.00 15,46,087.5 3 (DR) BEING AMTTRANSFERRED 03/01/12 PAYMT 6927 TO B.O.I. - C.C - 320430110000007 2,19,500.00 17,65,587. 53 (DR) BEING AMTTRANSFERRED 03/01/12 PAYMT TO B.O.I. - C.C - 320430110000007 5,945.00 17,71,532.53 (DR) BEING AMTTRANSFERRED 12/01/12 RECPT BY B.O.I. - C.C - 320430110000007 10,00,000.00 7,71,532. 53 (DR) BEING AMTRECIEVED THROUGH NET BANKING 18/01/12 JRNL 1 TO BHAGYLAXMI STEEL INDUSTRIES 95,781.00 8,67,313. 53 (DR) BEING AMTRECEIVED IN AAPL VIDE CH.NO.95781 OF HDFC BANK I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 7 18/01/12 JRNL 2 BY I.G.STEEL 1,30,000.00 7,37,313.53 (DR) BEING AMTTRANSFERRED TO ADHYASHAKTI ALLOYS PVT. LTD., 03/02/12 PAY MT 114764 TOSBI - 32147318554 2,00,000.00 9,37,313.53 (DR) BEING AMTTRANSFERRED 07/02/12 RECPT BY B.O.I. - C.C - 320430110000007 10,000.00 9,27,313.53 (DR) BEING AMTTRANSFERRED 13/02/12 PAYMN T TOSBI - 32147318554 3,50,000.00 12,77,313.53 (DR) BEING AMTTRANSFERRED 23/02/12 RECPT 45981 BYSBI - 32147318554 5,50,000.00 7,27,313.53 (DR) BEING AMT RECEIVED BY CHEQUE 12/03/12 PAYMN T TO B.O.I. - C.C - 320430110000007 50,000.00 7, 77,313.53 (DR) BEING ADVANCE TAX DEPOSITON BEHALF OF AAPL VIDE CHALLAN R N0.02098 BSR CODE 0222833 15/03/12 JRNL 2 BY DIPSINGBHAI MORI - ADV 1,75,000.00 6,02,313.53 (DR) BEING AMTPAID TO DIPSINHBHAI M ORI \ ON BEHALF OF US BY AAPL VIDE CH.NO. 1640 DT.10.06.10 15/03/12 JRNL 3 BY RAMSANGBHAI MORI 3,75,000.00 2,27,313.53 (DR) BEING AMTPAID TO RAMSANG MORI ON BEHALF OF US BY AAPL VIDE CH.NO. 901909/1639 RS.2.00+1.75 LACD ON 08.01.10 & 28.06.10 31/03/12 JRN L 4 BY INTERESTTO OTHERS 1,86,222.00 41,091.53 (DR) BEING INTEREST GIVEN CREDIT @ 12% FOP. THE YEAR ON PRODUCT BASIS AS PER WORKING STATEMENT 31/03/12 JRRN L 5 TO TDS ON INTEREST 18,622.00 59,713.53 (DR) BEING TDS DEDUCTED FROM INTEREST CREDITED @ 10% TOTAL ..... 98,10,515.53 97,50,802.00 CLOS ING BALANCE .. ... 59,713.53 (DR) I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 8 T HE AFORESAID COPY OF THE ACCOUNT CLEARLY DEMONSTRATE S THAT ASSESSEE WAS HAVING A CURRENT ACCOUNT WITH THE SAID COMPANY. WE HAVE ALSO GONE THROUGH THE DECISION OF THE CO - ORDINATE BENCH OF THE ITAT VIDE ITA NO. 102/AHD/2012 DATED 23 - 1 2 - 2016 I N THE CASE OF ITO VS. MEHULBHAI D. ZHAVERI AS SUPRA WHEREIN AFTER FOLLOWING THE DECISION OF HON BLE J URISDICTIONAL HIGH COURT IN THE CASE OF SCHUTZ DISHMAN BIO - TECH PVT. LTD. IN TAX APPEAL NO. 958 & 959 OF 2015 HELD THAT LOOKING TO THE LARGE N UMBER OF ADJUSTMENT ENTRIES IN THE ACCOUNTS BETWEEN TWO ENTITIES , THE AMOUNTS WERE NOT IN THE NATURE OF LOAN OR DEPOSIT BUT MERELY ADJUSTMENT. RELEVANT PART OF DECISION OF CO - ORDINATE BENCH OF THE ITAT IS REPRODUCED AS UNDER: - 11. WE HAVE GIVEN A THOUGHT FUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO CAREFULLY GONE THROUGH THE DECISIONS RELIED UPON BY THE RIVAL PARTIES. THERE IS NO DISPUTE THAT THE ASSESSEE IS HOLDING SUBSTANTIAL INTEREST IN KADAM EXPORTS (P) LTD., THE RELEVANT EXTR ACT OF THE COPY OF THE LEDGER ACCOUNT OF THE ASSESSEE IN THE BOOKS OF ACCOUNTS OF M/S. KADAM EXPORTS (P). LTD. IS AS UNDER: - DATE PARTICULARS VCH TYPE VCH NO. DEBIT CREDIT 30.05.2007 BY HDFC BANK CH. NO. 300195 BOI REC. M.D. ZAVERI RECEIPT 89 9,5 0,000.00 04.06.2007 TO HDFC BANK CH. NO. 721890 PAID TO M.D. ZAVERI PAYMENT 216 9,50,000.00 05.07.2007 BY HDFC BANK CH. NO. 353578 HDFC BANK REC. M.D. ZAVERI BY HDFC BANK CH. NO. 300197 BOI REC. M.D. ZAVERI RECEIPT RECEIPT 153 154 29,10 ,000.00 20,90,000.00 26.07.2007 BY HDFC BANK CH. NO. 300199 RECEIPT 182 40,00,000.00 31.07.2007 TO HDFC BANK CH. NO. 816791 PAID TO M.D. PAYMENT 534 15,00,000.00 I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 9 ZAVERI 11.09.2007 TO HDFC BANK CH. NO. 817102 PAID TO M.D. ZAVERI PAYMENT 753 20 ,00,000.00 23.10.2007 TO HDFC BANK CH. NO. PAYMENT 951 25,00,000.00 30.10.2007 TO HDFC BANK CH. NO. 817106 PAYMENT 991 5,00,000.00 02.11.2007 TO HDFC BANK CH. NO. 817108 PAYMENT 1018 25,00,000.00 11.01.2008 TO CITI BANK CURRENT A/C. CH. NO. 89402 PAYMENT 1266 35,00,000.00 30.01.2008 TO CITI BANK CURRECT A/C. CH. NO. 89403 PAYMENT 1336 3,00,000.00 TO HDFC BANK CH. NO. 817112 PAYMENT 1337 7,00,000.00 13.02.2008 BY HDFC BANK CH. NO. 941377 RECEIPT 573 25,00,000.00 15.03.2008 BY HD FC BANK RECEIPT 621 3,00,000.00 31.03.2008 BY HDFC BANK CH. NO. 941393 HDFC BANK RECEIPT 642 17,00,000.00 1,44,50,000.00 1,44,50,000.00 12. A PERUSAL OF THE AFORE - STATED COPY OF THE ACCOUNT CLEARLY SHOWS THAT THE ASSESSEE WAS HAVING A CURREN T ACCOUNT WITH THE SAID COMPANY. IT CAN BE SEEN THAT THERE ARE SEVERAL DEBITS AND CREDITS ENTRIES IN THE SAID ACCOUNT. THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SCHUTZ DISHMAN BIO - TECH PVT. LTD. (SUPRA) WAS SEIZED WITH THE FOLLOWING QUESTION OF LAW: - 'WHETHER ON FACTS AND IN LAW THE ITAT WAS RIGHT IN CANCELLING THE ORDER PASSED U/S 201(1) AND 201(A) OF THE ACT, WITHOUT APPRECIATING THAT THE AMOUNT ADVANCED WAS IN THE NATURE OF DEEMED DIVIDEND U/S 2(22)(E) OF THE ACT?' 13.AND THE RELEVANT FINDINGS OF THE HON BLE HIGH COURT READS AS UNDER: - 4. IT CAN THUS BE SEEN THAT THE COMMISSIONER AS A MATTER OF FACT FOUND THAT THE PAYMENTS WERE NOT IN THE NATURE OF CURRENT ADJUSTMENT. THERE WAS MOVEMENT OF FUND BOTH WAYS ON NEED BASIS. THE TRANSACTIONS IN THE NATURE OF LOANS AND ADVANCES ARE USUALLY VERY FEW IN NUMBERS WHEREAS IN THE PRESENT CASE, SUCH TRANSACTIONS ARE IN THE FORM OF CURRENT ACCOMMODATION ADJUSTMENT ENTRIES. THE COMMISSIONER THEREFORE, HELD THAT THE TRANSACTIONS WERE NOT IN THE NATURE OF LOANS AND ADVANCES. THE REVENUE CARRIED THE MATTER IN APPEAL. THE TRIBUNAL CONCURRED WITH THE VIEW OF THE CIT (APPEALS) AND HELD THAT THE AMOUNTS WERE NOT IN THE NATURE OF INTER CORPORATE DEPOSITS AND WERE THEREFORE, NOT TO BE TREATED AS LOA NS OR ADVANCES AS CONTEMPLATED IN SECTION 2(22)(E) OF THE ACT. 5. THE ISSUE IS SUBSTANTIALLY ONE OF APPRECIATION OF FACTS. WHEN THE CIT(APPEALS) AS WELL AS TRIBUNAL CONCURRENTLY HELD THAT LOOKING TO LARGE NUMBER OF ADJUSTMENT ENTRIES IN THE ACCOUNTS BETWE EN TWO ENTITIES, THE AMOUNTS WERE NOT IN THE NATURE OF LOAN OR DEPOSIT, BUT MERELY ADJUSTMENTS, APPLICATION OF SECTION I.T.A NO. 1415 /AHD/20 17 A.Y. 2012 - 13 PAGE NO ASHOKKUMAR H. RATHOD VS. IT O 10 2(22)(E) OF THE ACT WOULD NOT ARISE. CONSEQUENTLY, NO QUESTION OF LAW ARISES. TAX APPEALS ARE DISMISSED. ` 14. IF THE AFOREMENTIONED COP Y OF ACCOUNTS IS CONSIDERED IN THE LIGHT OF THE DECISION OF THE HON BLE JURISDICTIONAL HIGH COURT (SUPRA), WE FIND THAT FACTS ARE SIMILAR DEBITS AND CREDITS TO THE FACTS CONSIDERED BY THE HON BLE JURISDICTIONAL HIGH COURT. RESPECTFULLY FOLLOWING THE FIND INGS OF THE HON BLE JURISDICTIONAL HIGH COURT, WE DECLINE TO INTERFERE WITH THE FINDINGS OF THE FIRST APPELLATE AUTHORITY. 15. BEFORE PARTING, AS MENTIONED ELSEWHERE, THE LD. D.R. HAS RELIED UPON SEVERAL DECISIONS. IN OUR CONSIDERED OPINION, NONE OF THE DECISIONS RELIED UPON BY THE LD. D.R. THE HON BLE COURTS HAD CONSIDERED A TRANSACTION WHICH WAS IN THE NATURE OF CURRENT ACCOUNT WHERE THERE WERE SEVERAL DEBITS AND CREDITS. THEREFORE, THE FACTS OF THE CASE IN HAND ARE CLEARLY DISTINGUISHABLE FROM THE FACT S OF THE CASES RELIED UPON BY THE LD. D.R. 15. SINCE THE FACTS OF THE CASE DECIDED BY THE HON BLE JURISDICTIONAL HIGH COURT SQUARELY APPLY TO THE FACTS OF THE CASE IN HAND, WE HAVE RESPECTFULLY FOLLOWED THE SAME. RESPECTFULLY FOLLOWING THE DECISION OF CO - ORD INATE BENCH OF THE ITAT AS SUPRA ON IDENTICAL ISSUE AND SIMILAR FACT, THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 28 - 06 - 201 9 SD/ - SD/ - ( SUDHANSHU SRIVASTAVA ) ( AMARJIT SIN GH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 28 /06 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,