The DCIT, Circle-2(1), Guntur, Guntur V. M/s RehmanKhan Hotel Enterprises Pvt. Ltd, Guntur

ITA 183/VIZ/2012

• Counselvise Citation: 18325314 RSA 2012
• Duration Of Justice: 2 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 24-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D MANOJ KUMAR
• Assessee Lawyers: N O N E
• Keywords: Deemed dividend

Judgement Text

ITA NOS.183 TO 185/VIZAG/2012 REHMAN KHAN HOTEL ENTERPRISES PVT. LTD., GUNTUR IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO S . 183 TO 185 /VIZAG/ 2012 ASSESSMENT YEARS : 2006-07 TO 2008-09 RESPECTIVELY DCIT CIRCLE-2(1) GUNTUR VS. REHMAN KHAN HOTEL ENTERPRISES PVT. LTD. GUNTUR (APPELLANT) (RESPONDENT) PAN NO.AADCR 4404K ASSESSEE BY: N O N E REVENUE BY: SHRI D. MANOJ KUMAR, ADDL. CIT DATE OF HEARING : 11.07.2014 DATE OF PRONO UNCEMENT : 30.07.2014 ORDER PER BENCH:- THESE THREE APPEALS ARE FILED BY THE REVENUE AND A RE DIRECTED AGAINST THE ORDER OF THE CIT (A) GUNTUR DATED 15.3.2012 FOR THE ASSESSMENT YEARS 2006-07 & 2008-09 AND ORDER DATED 9.12.2011 FOR THE ASSESSMENT YEAR 2007-08. AS THE ISSUES ARISING IN ALL THE THREE APP EALS ARE COMMON, FOR THE SAKE OF CONVENIENCE, THE CASES ARE HEARD TOGETHER A ND DISPOSED OF BY WAY OF THIS COMMON ORDER. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. THERE IS NO PETITION FOR ADJOURNMENT EITHER. UNDER THESE CIRCUMSTANCES, WE DISPOSE OF THE CASES EX-PARTE QUA THE ASSESSEE AFTE R HEARING THE LD. D.R. 3. HEARD THE LD. D.R. ON A CAREFUL CONSIDERATION OF FACTS AND CIRCUMSTANCES OF THE CASE AND A PERUSAL OF THE PAPE RS ON RECORD AND THE ORDERS OF THE AUTHORITIES BELOW, WE HOLD AS FOLLOWS . THE UNDISPUTED FACT IS THAT THE ASSESSEE COMPANY IS NOT A SHAREHOLDER OF M/S. REHMANKHAN TOBACCO ENTERPRISES PVT. LTD. U NDER THESE CIRCUMSTANCES, THE QUESTION IS WHETHER THE AMOUNT T HAT WAS ADVANCED BY M/S. REHMANKHAN TOBACCO ENTERPRISES PVT. LTD. TO TH E ASSESSEE COMPANY, ITA NOS.183 TO 185/VIZAG/2012 REHMAN KHAN HOTEL ENTERPRISES PVT. LTD., GUNTUR 2 CAN BE TREATED AS DEEMED DIVIDEND UNDER THE PROVI SIONS OF SECTION 2(22)(E) OF THE INCOME-TAX ACT? AS THE ASSESSEE IS NOT A RE GISTERED SHAREHOLDER OF M/S. REHMANKHAN TOBACCO ENTERPRISES PVT. LTD., THE QUESTION OF TREATING THE ADVANCE IN QUESTION, AS DEEMED DIVIDEND DOES NOT ARISE. 4. THE FIRST APPELLATE AUTHORITY HAS RIGHTLY RELIED ON THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ACIT V S. BHAUWMIK COLOUR PVT. LTD. 313 ITR 146 (MUM) (AT) (SB) AND JUDGEMENT OF T HE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. UNIVERSAL MEDICAR E PVT. LTD. (2010) 324 ITR 263 (BOM) AND ALSO BY THE RAJASTHAN HIGH COURT IN T HE CASE OF CIT VS. HOTEL HILLTOP (2009) 313 ITR 116 (RAJ.). THE VISAKHAPAT NAM BENCH OF THE TRIBUNAL HAS APPLIED THESE DECISIONS IN THE CASE OF M/S. AND HRA TRADE DEVELOPMENT CORPORATION PVT. LTD. VS. DCIT IN ITA NO.41/VIZAG/2 010 FOR THE ASSESSMENT YEAR 2006-07. CONSISTENT WITH THE VIEW TAKEN THERE IN, WE FIND NO INFIRMITY IN THE ORDER OF FIRST APPELLATE AUTHORITY AND UPHOLD T HE SAME. 5. IN THE RESULT, ALL THE THREE APPEALS OF THE REVEN UE ARE DISMISSED . PRONOUNCED IN THE OPEN COURT ON 30 TH JULY14 SD/- SD/- (SAKTIJIT DEY) (J. SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS VISAKHAPATNAM, DATED 30 TH JULY, 2014 COPY TO 1 THE DCIT, CIRCLE-2(1), GUNTUR 2 M/S. REHMANKHAN HOTEL ENTERPRISES PVT. LTD., 6-4- 98, R.K. TOWERS, 4/2, ARUNDALPET, GUNTUR 3 THE CIT, GUNTUR 4 THE CIT(A), GUNTUR 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM