S Thyagarajan, Chennai V. ACIT, Corporate Circle -6(2), Chennai

ITA 172/CHNY/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1004 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 12-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL B KIRTANE
• Assessee Lawyers: S SRIDHAR
• Keywords: Deemed dividend; Reassessment proceedings

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI . , , BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./I.T.A. NO.172/CHNY/2018 / ASSESSMENT YEAR : 2006-2007 SHRI. S. THYAGARAJAN, NEW NO.23, THANIKACHALAM ROAD, T. NAGAR, CHENNAI 600 017 [PAN AABPT 1439K] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(2) CHENNAI. ( / APPELLANT) ( /RESPONDENT) ! ' # / APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE $%! ' # /RESPONDENT BY : SHRI. AMOL B. KIRTANE, JCIT & ' ' () /DATE OF HEARING : 17-09-2018 *+ ' () /DATE OF PRONOUNCEMENT : 18-09-2018 / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER: IN THIS APPEAL FILED BY THE ASSESSEE, WHICH IS D IRECTED AGAINST AN ORDER DATED 29.11.2017 OF LD. COMMISSION ER OF INCOME TAX (APPEALS)-15, CHENNAI, IT ASSAILS AN ADDITION OF C 29,65,000/- MADE U/S.2(22) (E) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). ITA NO. 172/CHNY/2018 :- 2 -: 2. FACTS APROPOS ARE THAT ASSESSEE, AN INDIVIDUAL HAD FILED HIS RETURN FOR THE IMPUGNED ASSESSMENT YEAR DISCLOSING INCOME OF C26,79,940/-. THE RETURN WAS ORIGINALLY PROCESSED U/S.143(1) OF THE ACT. THEREAFTER, THE ASSESSMENT WAS REOPENED BY I SSUING NOTICE U/S.148 OF THE ACT. REASON FOR ISSUING SUCH NOTICE , MENTIONED BY THE LD. ASSESSING OFFICER READ AS UNDER:- IN THE CASE OF M/S. EMBASSY TOURS & TRAVELS (P) L TD, ASSESSED TO TAX IN COMPANY CIRCLE II(1), CHENNAI, I T WAS OBSERVED THAT THE COMPANY HAS GIVEN LOAN AMOUNTING TO C29,65,000/- TO SHRI S. THYAGARAJAN WHO HOLDS 27% S HARES IN THE SAID COMPANY. THE RESERVES AND SURPLUS AVAI LABLE WITH M/S. EMBASSY TOURS & TRAVELS (P) LTD AS ON 31.03.2006 IS C39,99,380/-. THEREFORE, THE LOAN AMOUNT OF C29,65,000/- GIVEN TO /S. EMBASSY TOURS & TRAVELS (P) LTD TO SHRI S.THYAGAR AJAN IS SQUARELY COVERED BY THE PROVISIONS OF SECTION 2(22) ( E) OF THE I.T. ACT, 1961 AND HAS TO BE TAXED IN THE HAND OF SHRI. S. THYAGARAJAN AS DEEMED DIVIDEND. 3. DURING THE COURSE OF THE REASSESSMENT PROCEEDINGS, ASSESSEE SUBMITTED LEDGER ACCOUNTS IN SUPPORT OF IT S CONTENTION THAT THE TRANSACTIONS CONSIDERED FOR ADDITION UNDER SECT ION 2(22) (E) OF THE ACT WERE BETWEEN M/S.SKYLIFT CARGO (P) LTD AND M /S. EMBASSY TOURS & TRAVELS (P) LTD AND NOT BETWEEN ASSESSEE AND M/S . EMBASSY TOURS & TRAVELS (P) LTD. ASSESSEE ALSO ASSERTED THAT TH E TRANSACTIONS WERE ALL GENUINE AND THROUGH CHEQUES. ACCORDING TO THE ASSESSEE THERE WERE ERRORS IN THE ENTRIES PASSED IN BOOKS OF ACCO UNTS, AND THIS WOULD ITA NO. 172/CHNY/2018 :- 3 -: NOT CONVERT TRANSACTIONS BETWEEN M/S.SKYLIFT CARGO (P) LTD AND M/S. EMBASSY TOURS & TRAVELS (P) LTD AS DEEMED DIVIDEND IN HIS HANDS. 4. HOWEVER, LD. ASSESSING OFFICER WAS NOT IMPRESSED BY THE ABOVE ARGUMENTS. ACCORDING TO HIM, IT WAS POSSIBLE THAT THERE WERE TRANSACTIONS BETWEEN M/S.SKYLIFT CARGO (P) LTD AND M/S. EMBASSY TOURS & TRAVELS (P) LTD DURING THE RELEVANT PREVIOU S YEAR. HOWEVER, AS PER THE LD. ASSESSING OFFICER, ASSESSEE HAVING RECE IVED ADVANCES FROM M/S. EMBASSY TOURS & TRAVELS (P) LTD DURING THE REL EVANT PREVIOUS YEAR, THESE ADVANCES WERE DEEMED DIVIDEND U/S.2(22) (E) OF THE ACT. A SUM OF C29,65,000/- WAS ADDED UNDER THE SAID SECTIO N. 5. AGGRIEVED, ASSESSEE MOVED IN APPEAL BEFORE LD. COMMISSIONER OF INCOME TAX (APPEALS). SIMILAR CONTE NTIONS AS TAKEN BEFORE THE LD. ASSESSING OFFICER WERE RAISED BEFOR E LD. COMMISSIONER OF INCOME TAX (APPEALS). APART FROM THESE, ASSESSE E ALSO FURNISHED THE BANK STATEMENTS BEFORE LD. COMMISSIONER OF INCO ME TAX (APPEALS). LD. COMMISSIONER OF INCOME TAX (APPEALS ) SOUGHT A REMAND REPORT FROM THE LD. ASSESSING OFFICER. LD. ASSESSING OFFICER IN THE REMAND REPORT STATED AS UNDER:- ITA NO. 172/CHNY/2018 :- 4 -: A) BOOKS OF BOTH THE COMPANIES WERE AUDITED. T HE ANNUAL REPORTS AND AUDITOR REPORTS WERE SUBMITTED A S PER COMPANIES ACT. HENCE THOSE ENTRY TO BE TREATED AS CORRECT AS HELD IN ACIT VS. AJAY JADEJA (LTAT, DELHI) 5 ITR(TRIB) 233. B) THE BOOKS WERE AUDITED IN COMPLIANCE WITH S.44 AB OF IT ACT 1961 AND AUDIT REPORTS WERE FINALISED AFTER DUE DILIGENCE. C) IN NONE OF THE ABOVE CASES THIS MISTAKE WAS QUALIFI ED. D) IF ONE COMPANY HAD PASSED A WRONG ENTRY WE CAN SAY IT WAS WRONG ENTRY BY VERIFYING BOOKS OF OTHER COMPANY. IT IS VERY UNLIKELY THAT BOTH THE COMPANIES PASSED WRONG ENTRIES. IT IS TO BE NOTED THAT THE TRANSACTION IS NOT SINGLE TRANSACTION. THERE ARE MULTIPLE ENTRIES. IT IS VERY UNLIKELY THAT IN ALL THE OCCASIONS BOTH THE COMPAN IES PASSED MULTIPLE E)IF THE TRANSACTION WAS BETWEEN M/ S EMBASSY TRAVELS & TOURS (P) LTD AND M/ S SKY LIFT CARGO (P) LTD THERE WAS NO NEED JAR BOTH THE COMPANIES TO RECORD THE TRANSACTI ON IN THE NAME OF ASSESSEE AND NOT IN THEIR NAMES F).. THIS PROVES THAT M/ S EMBASSY TRAVELS & TOURS (P) LTD GAVE FUNDS TO M/ S SKY LIFT CARGO (P) LTD ON BEHALF OF ASSESSEE AND HENCE NAME OF ASSESSEE WAS USED BY BOTH THE CONCERNS. G) TRANSACTION BETWEEN ASSESSEE & M/ S EMBASSY TRAVELS & TOURS (P) LTD WAS NOT FOR ANY TRADING PURPOSE. ASSESSEE REPLIED TO THE ABOVE REMAND REPORT STRESSI NG THAT WHAT WAS SOUGHT TO BE TAXED UNDER SECTION 2(22) (E) OF THE ACT WAS THE RESULT OF CERTAIN ERRORS AND MISTAKES WHICH HAPPENED IN A CCOUNTING. ITA NO. 172/CHNY/2018 :- 5 -: 6. LD. COMMISSIONER OF INCOME TAX (APPEALS) WAS NOT IMPRESSED BY THE ARGUMENTS OF THE ASSESSEE. ACCOR DING TO HIM, LD. ASSESSING OFFICER WAS JUSTIFIED IN HOLDING THAT THE ADVANCE RECEIVED BY THE ASSESSEE FROM M/S. EMBASSY TOURS & TRAVELS (P) LTD WERE DEEMED DIVIDEND IN ASSESSEES HAND. HE THUS CONFIRMED THE ADDITION MADE BY THE LD. ASSESSING OFFICER. 7. NOW BEFORE US, THE LD. AUTHORISED REPRESENTATIVE STRONGLY ASSAILING THE ORDERS OF THE LOWER AUTHORITIES SUBMI TTED THAT LEDGER ACCOUNT OF THE ASSESSEE IN M/S. EMBASSY TOURS & TRA VELS (P) LTD WAS PLACED AT PAPER BOOK PAGES 1 TO 3. AS PER LD. AUTH ORISED REPRESENTATIVE THE ABOVE MENTIONED LEDGER ACCOUNT, INCLUDED THEREIN BOTH TRANSACTIONS RELATING TO M/S.SKYLIFT CARGO (P) LTD AS WELL AS THAT OF ASSESSEE. CONTENTION OF THE LD. AUTHORISED REPRES ENTATIVE WAS THAT IF THIS LEDGER ACCOUNT WAS SPLIT INTO TRANSACTIONS ASS ESSEE HAD WITH M/S. EMBASSY TOURS & TRAVELS (P) LTD AND TRANSACTIONS M /S.SKYLIFT CARGO (P) LTD HAD WITH M/S. EMBASSY TOURS & TRAVELS (P) L TD, IT WOULD CLEARLY DEMONSTRATE THAT THERE WERE NO OUTSTANDING ADVANCES TO THE ASSESSEE FROM M/S. EMBASSY TOURS & TRAVELS (P) LTD, WHICH C OULD BE CONSIDERED FOR AN ADDITION UNDER SECTION 2(22) (E) OF THE ACT. REFERRING TO PAPER BOOK PAGE NO.4, WHICH GAVE THE T RANSACTIONS WITH REFERENCE TO M/S.SKYLIFT CARGO (P) LTD, LD. AUTHORI SED REPRESENTATIVE ITA NO. 172/CHNY/2018 :- 6 -: SUBMITTED THAT IN THE BOOKS OF M/S. EMBASSY TOURS & TRAVELS (P) LTD, THERE WAS A DEBIT BALANCE FOR M/S.SKYLIFT CARGO (P) LTD. ACCORDING TO HIM, JUST BECAUSE SOME OF THE CHEQUES WERE ENTERED IN ASSESSEES ACCOUNT IN THE BOOKS OF M/S. EMBASSY TOURS & TRAVE LS (P) LTD WOULD NOT MEAN THAT THERE WAS ANY DEEMED DIVIDEND IN THE HANDS OF THE ASSESSEE. 8. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE STRONG LY SUPPORTING THE ORDERS OF THE LOWER AUTHORITIES SUBM ITTED THAT CHEQUES WERE ISSUED BY M/S. EMBASSY TOURS & TRAVELS (P) LTD IN THE NAME OF THE ASSESSEE. THUS, AS PER THE LD. DEPARTMENTAL REP RESENTATIVE, ASSESSEE COULD NOT SAY THAT THE AMOUNTS RECEIVED BY HIM THROUGH CHEQUES WERE NOT ADVANCES FALLING WITHIN THE DEFINI TION OF DEEMED DIVIDEND U/S.2(22) (E) OF THE ACT. 9. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE ORDERS OF THE AUTHORITIES BELOW. LEDGER ACCOUNT OF THE ASSESSEE IN THE BOOKS OF M/S. EMBASSY TOURS & TRAVELS (P) LTD, FOR THE RELEVANT PREVIOUS YEAR IS REPRODUCED HEREUNDER:- ITA NO. 172/CHNY/2018 :- 7 -: GROUP : LIABILITIES ACCOUNT SELECTION: SELEC TED TRANSACTED ACCOUNTS (ALL AMOUNTS IN C) DOCUMENT DATE NUMBER NARRATION DEBIT CREDIT RUNNING BALAN CE S. THYAGARAJAN LOAN OPENING BALANC E 0.00 CR 14 JUN, 2005 RR RO5 1342 BY BOB CHEQUE NO.662566 5,00,000.00 5,00,000.00 CR 17 JUN, 2005 RR RO5 1425 BY BOB CHEQUE NO.662568 5,00,000.00 10,00,000.00 CR 22 JUN, 2005 RR RO5 1502 BY BOB CHEQUE NO.662571 12,00,000.00 22,00,000.00 CR 28 JUN, 2005 RR RO51609 BY BOB CHEQUE NO.662572 5,00,000.00 27,00,000.00 CR 07 JUL, 2005 RR RO5 1772 BY BOB CHEQUE NO.662782 3,00,000.00 30,00,000.00 CR 29 JUL, 2005 RR RO5 2177 BY BOB CHEQUE NO.662787 4,00,000.00 34,00,000.00 CR 02 AUG 2005 RR RO5 2241 BY BOB CHEQUE NO.662788 6,00,000.00 40,00,000.00 CR 05 AUG 2005 RR RO5 2287 BY BOB CHEQUE NO.662789 3,65,000.00 43,65,000.00 CR 15 SEPT2005 BP HBP5 555 CH. NO.380542 PAID TO S. THYAGARAJAN 43, 65,000.00 0.00 CR 17 SEPT2005 RR RO5 2991 CH 419401, B.O.B CH-18. THYAGARAJAN 48,00,000.00 48,00,000.00 CR BP HBP5 570 380557 SKY LIFT CARGO P. LTD 39,00,000.00 9,00,000.00 CR 19 SEPT2005 RR RO5 3005 419402 BOB CH - 18 RECD FROM THYAGA RAJAN 15,00,00 0.00 24,00,000.00 CR RR RO5 3015 415911 BOB CH - 18 SKYLIFT CARGO P. LTD 6,00,000.00 30,00,000.00 CR 20 SEPT2005 RR RO5 3024 CH 415917, SKYLIFT CARGO P. LTD 4,00,000.00 34,00,000.00 CR RR RO5 3044 CH 415926, SKYLIFT CARGO P. LTD 10,00,000.00 44,0 0,000.00 CR 21 SEPT2005 RR RO5 3047 CH 415927, SKYLIFT CARGO P. LTD 9,00,000.00 53,00,000.00 CR 22 SEPT2005 RR RO5 3075 CH 415943, SKYLIFT CARGO P. LTD 10,00,000.00 63,00,000.00 CR ITA NO. 172/CHNY/2018 :- 8 -: BP HBP5 582 380569 S. THYAGA RAJAN 3,00,000.00 60,00,000.00 CR 24 SEPT2005 BP HBP5 589 380576, SKYLIFT CARGO P. LTD 20,00,000.00 40,00,000.00 CR 30 SEPT2005 BP HBP5 611 380593. THYAGA RAJAN 10,00,000.00 30,00,000.00 CR BP HBP5 618 TRANSFER TO . THYAGA RAJAN PERSONAL A/C. 10,00,000.00 20,00,000.00 CR 03 OCT 20 05 BP HBP5 625 380605, SKYLIFT CARGO P. LTD 9,00,000.00 11,00,000.00 CR 04 OCT 2005 RR RO5 3297 CARGO P. LTD TOWARDS BANK TRAN SFER DIRECTLY 10,00,000.00 21,00,000.00 CR BP HBP5 632 380609. SKYLIFT CARGO P. LTD 4,00,000.00 17,00,000.00 CR 05 OCT 2005 RR RO5 3328 418775, SKYLIFT CARGO P. LTD 13,00,000.00 30,00,000.00 CR 06 OCT 2005 RR RO5 3353 418790, SKYLIFT CARGO P. LTD 10,00,000.00 40,00,000.00 CR 07 OCT 2005 RR RO5 3376 418808, SKYLIFT CARGO P. LTD 10,00,000.00 50,00,000.00 CR 10 OCT 2 005 RR RO5 3393 663133. RECD FROM S. THYAGARAJAN 10,00,000.00 60,00,000.00 CR 20 OCT 2005 BP HBP5 670 380643 SKYLIFT CARGO P. LTD 20,00,000.00 40,00,000.00 CR BP HBP5 674 380648 SKYLIFT CARGO P. LTD 47,00,000.00 7,00,000.00 DR. 22 OCT 2005 RR RO5 3597 418863, SKYLIFT CARGO P. LTD 9,00,000.00 2,00,000.00 CR 24 OCT 2005 RR RO5 3607 418867, SKYLIFT CARGO P. LTD 10,00,000.00 12,00,000.00 CR RR RO5 3612 419000, SKYLIFT CARGO P. LTD 18,00,000.00 30,00,000.00 CR RR RO5 3624 418882, SKYLIFT CARGO P. LTD 10,00,000.00 40,00,000.00 CR 25 OCT 2005 RR RO5 3648 418886, SKYLIFT CARGO P. LTD 20,00,000.00 60,00,000.00 CR 05 NOV 2005 BP HBP5 718 422136, SKYLIFT CARGO P. LTD 55,00,000.00 05,00,000.00 CR 07 NOV 2005 BP HBP5 722 422139, SKYLIFT CARGO P. LTD 4,00,000.00 1,00,000.00 CR 09 NOV 2005 RR RO5 3862 419157 SKYLIFT CARGO P. LTD 8,00,000.00 9,00,000.00 CR 10 NOV 2005 BP HBP5 735 422149, SKYLIFT CARGO P. LTD 5,00,000.00 4,00,000.00 CR 12 NOV 2005 RR RO5 3917 419191 SKYLIFT CARGO P. LTD 10,00,000.00 14,00,000.00 CR 16 NOV 2005 BP HBP5 753 422162, SKYLIFT CARGO P. LTD 32,00,000.00 18,00,000.00 DR ITA NO. 172/CHNY/2018 :- 9 -: 18 NOV 2005 RR RO5 4055 425270, SKYLIFT CARGO P. LTD 27,00,000.00 09,00,000.00 CR 21 NOV 2005 RR RO5 4082 425293, SKYLIFT CARGO P. LTD 10,00,000.00 19,00,000.00 CR 24 NOV 2005 RR RO5 4124 4 2535 5, SKYLIFT CARGO P. LTD 6,00,000.00 25,00,000.00 CR 28 NOV 2005 RR RO5 4195 425385, SKYLIFT CARGO P. LTD 3,00,000.00 28,00,000.00 CR 03, DEC 2005 BP HBP5 806 422301, SKYLIFT CARGO P. LTD 5,0 0,000.00 23,00,000.00 CR BP HBP5 807 422302, SKYLIFT CARGO P. LTD 4,00,000.00 19,00,000.00 CR 18 JAN 2006 RR RO5 4999 CH#663537 RECD FROM THYAGARAJAN 3,00,000.00 22,00,000.00 CR 20 JAN 2006 BP HBP5 941 422411, SKYLIFT CARGO P. LTD 5,00,000.00 17 ,00,000.00 CR BP HBP5 949 422419, SKYLIFT CARGO P. LTD 4,00,000.00 13,00,000.00 CR 23 JAN 2006 BP HBP5 954 422423, PAID TO THYAGARAJAN 3,00,000.00 10,00,000.00 CR 28 JAN 2006 RR RO5 5113 207246, SKYLIFT CARGO P. LTD 4,00,000.00 14,00,000.00 CR RR RO5 5125 5107417, SKYLIFT CARGO P. LTD 4,00,000.00 18,00,000.00 CR 02 FEB 2006 RR RO5 5207 663543 RECD FROM THYAGARAJAN 1,50,000.00 19,50,000.00 CR 06 FEB 2006 BP HBP5 992 422449 SKYLIFT CARGO P. LTD 4,00,000.00 15,50,000.00 CR 09 FEB 2006 RR R O5 5292 207543, SKYLIFT CARGO P. LTD 10,00,000.00 25,50,000.00 CR 24FEB 2006 BP HBP5 1062 422508 SKYLIFT CARGO P. LTD 6,00,000.00 19,50,000.00 CR 27FEB 2006 RR RO5 5587 199238 SKYLIFT CARGO P. LTD 6,00,000.00 25,50,000.00 CR 02 MAR 2006 RR RO5 566 6 199324 SKYLIFT CARGO P. LTD 22,00,000.00 47,00,000.00 CR 04 MAR 2006 BP HBP5 1085 409657/ FUNDS TRANSFER TO SKYLIFT CARGO P. LTD 28,00,000.00 19,50,000.00 CR 16 MAR 2006 BP HBP5 1120 422560 THYAGARAJ AN 50,000.00 19,00,000.00 CR 20 MAR 2006 RR RO5 5923 199504, SKYLIFT CARGO P. LTD 25,00,000.00 44,00,000.00 CR BP HBP5 1125 422529 SKYLIFT CARGO P. LTD 24,00,000.00 20,00,000.00 CR 21 MAR 2006 BP HBP5 1134 422569, THYAGARAJ AN 50,000.00 19,50,000.00 CR 22 MAR 2006 BP HBP5 1140 422573, THYAG ARAJ AN 50,000.00 19,00,000.00 CR ITA NO. 172/CHNY/2018 :- 10 -: BP HBP51143 422577, SKYLIFT CARGO P. LTD 5,00,000.00 14,00,000.00 CR 31MAR 2006 JI JV 413 TRANSFERRED FROM SHARES IN MALAR HOSPITAL A/C. 43,65,000.00 29 , 6 5 ,000.00 D R TOTAL /CLOSING BALANCE 4,34,80,000.00 4,05,15,000.00 29,65,000.00 DR A PERUSAL OF THE ABOVE CLEARLY SHOW THAT LARGE NUM BER OF ENTRIES WERE IN THE NAME OF M/S.SKYLIFT CARGO (P) LTD. NO DOUBT SOME OF THE ENTRIES WERE IN THE NAME OF ASSESSEE ALSO. HOWEVER, THE AC COUNT DO INDICATE A MIXING UP OF TRANSACTIONS, M/S. EMBASSY TOURS & TRAVELS (P) LTD HAD WITH S. THYAGARAJAN AND WITH M/S.SKYLIFT CARGO (P) LTD. SUCH MIXING UP, IN OUR OPONION CLEARLY SUPPORTS THE CONT ENTION OF THE ASSESSEE THAT SOME OF THE CHEQUES ISSUED BY M/S. EMBASSY TOURS & TRAVELS (P) LTD, THOUGH IN HIS NAME, WERE FOR THE BENEFIT OF M/S.SKYLIFT CARGO (P) LTD ONLY. IN OUR OPINION, JUST BECAUSE A FEW CHEQUES WERE ISSUED IN ASSESSEES PERSONAL NAME WOULD NOT TAKE THE SHEEN OUT OF THE CLAIM OF THE ASSESSEE THAT SUCH ENTRIES WERE O NLY DUE TO ERRORS COMMITTED BY M/S. EMBASSY TOURS & TRAVELS (P) LTD AND ALL THE TRANSACTIONS WERE IN SUBSTANCE WITH M/S.SKYLIFT CARGO (P) LTD AND NOT CONNECTED TO THE ASSESSEE. IF WE CONSIDER THE ACC OUNT IN ITS TOTALITY, IT CAN BE SEEN THAT A SUM OF C29,65,000/- WAS A DEB IT BALANCE, DUE FROM M/S. EMBASSY TOURS & TRAVELS (P) LTD TO M/S.S KYLIFT CARGO (P) LTD, AFTER CONSIDERING THE TRANSACTIONS IN THE NAME OF ASSESSEE. IN ITA NO. 172/CHNY/2018 :- 11 -: SUCH CIRCUMSTANCES, WE ARE OF THE OPINION THAT SECT ION 2 (22) (E) OF THE ACT COULD NOT HAVE BEEN INVOKED, TAKING AN IS OLATED VIEW OF THE CHEQUES ISSUED BY M/S. EMBASSY TOURS & TRAVELS (P) LTD IN FAVOUR OF THE ASSESSEE, IGNORING THE TRUE INTENT OF THE TRANS ACTIONS. ASSESSEE HAD ALL ALONG STATED THAT THE TRANSACTIONS WERE IN FACT BETWEEN M/S. EMBASSY TOURS & TRAVELS (P) LTD AND M/S.SKYLIFT CAR GO (P) LTD AND THIS CLAIM WAS NOT EFFECTIVELY REBUTTED BY THE REVENUE. WE ARE THEREFORE OF THE OPINION THAT THERE WAS NO CASE FOR AN ADDITION UNDER SECTION 2(22) (E) OF THE ACT. SUCH ADDITION STANDS DELETED. 10. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED ON TUESDAY, THE 18TH DAY OF SEPTE MBER, 2018, AT CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) / JUDICIAL MEMBER ( . '#'$ ) (ABRAHAM P. GEORGE) % &' / ACCOUNTANT MEMBER - ' / CHENNAI . / DATED: 18TH SEPTEMBER, 2018. KV / ' $(0 1 2 1 ( / COPY TO: 1 . ! / APPELLANT 3. & 3( ( ) / CIT(A) 5. 167 $(8 / DR 2. $%! / RESPONDENT 4. & 3( / CIT 6. 79 :' / GF