The Dy. Commissioner of Income-tax, Jammu V. M/s. GTZ Securities Ltd, Jammu

ITA 576/ASR/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7703 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-07-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 07-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R L CHHANALIA
• Assessee Lawyers: V K AGGARWAL
• Keywords: Deemed dividend

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.576(ASR)/2011 ASSESSMENT YEAR:2003-04 PAN :AABCG5353Q THE DY. COMMR. OF INCOME-TAX, VS. M/S.GTZ SECURIT IES LTD. CIRCLE-1I, JAMMU. JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. R.L. CHHANALIA, DR RESPONDENT BY:SH. V.K. AGGARWAL, DATE OF HEARING:25/07/2012 DATE OF PRONOUNCEMENT:27/07/2012 ORDER PER BENCH ; THE PRESENT APPEAL OF THE REVENUE IS DIRECTED AGAI NST THE IMPUGNED ORDER OF CIT(A), JAMMU, DATED 29.09.2011 FOR T HE ASSESSMENT YEAR 2003-04 ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN DELETING THE ADDITION OF RS.9,66,39,9 61/- MADE ON ACCOUNT OF DEEMED DIVIDEND IGNORING THE PROVISIONS OF SECTION 2(22)(E) OF THE INCOME-TAX AC T, 1961. 2 2. THE APPELLANT CRAVES TO AMEND OR ADD ANY ONE OR MORE GROUNDS OF APPEAL. 2. THE FACTS NARRATED BY THE REVENUE ARE NOT DISPUT ED BY BOTH THE PARTIES. THEREFORE, THERE IS NO NEED TO REPEAT THE SAME FOR THE SAKE OF CONVENIENCE. 3. AT THE TIME OF HEARING BOTH THE PARTIES CONCEDED THAT THE ISSUE INVOLVED IN THE PRESENT APPEAL HAS ALREADY BEEN AD JUDICATED AND DECIDED BY THE HONBLE HIGH COURT OF PUNJAB & HARYANA, IN THE CASE OF CIT-II V. M/S. SHARMAN WOOLLEN MILLS LTD. REPORTED IN 2011-TIOL-63 9-HC-P&H-IT ON SEPT.28,2011. THE HONBLE JURISDICTIONAL HIGH CO URT, HAS HELD THAT THE LOAN ADVANCED TO A ASSESSEE COMPANY CANNOT BE TREAT ED AS DIVIDEND IN TERM OF SECTION 2(22)(E) OF THE ACT, IF THE ASSESSEE IS NOT A SHAREHOLDER OF THE LENDING COMPANY. 4. AFTER HEARING BOTH THE PARTIES, WE FIND THAT TH E ISSUE INVOLVED IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT-II V. M/S. SHARMAN WOOLLEN MILLS LTD. REPORTED IN 2011-TIOL-639-HC-P&H-IT (SUP RA) IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. RESPECTFULLY FOL LOWING THE ORDER OF THE HONBLE JURISDICTIONAL HIGH COURT PASSED IN ITA N O. 152 OF 2011 IN THE 3 CASE OF CIT-II V. M/S. SHARMAN WOOLLEN MILLS LTD. ( SUPRA) DATED SEPT. 28, 2011, THE APPEAL FILED BY THE REVENUE IS DISMISSED . 5. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO.576(ASR)/2011 STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27TH JULY, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 TH JULY, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. GTZ SECURITIES LTD. JAMMU. 2. THE DCIT, CIR.1!, JAMMU. 3. THE CIT(A) 4. THE CIT 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.