DEPUTY Commissioner of Income tax, Bangalore V. Sri B P Kumar Babu, Bangalore

MA 3/BANG/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4415 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-07-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 20-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Deemed to accrue or arise in india; Deemed dividend

Judgement Text

MP.3/BANG/2016 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER MISC. PETITION NO.3/BANG/2016 (IN I.T.A NO.1658/BANG/2013 (ASSESSMENT YEAR : 2007-08) DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE -2(2), BENGALURU ..APPLICANT V. SHRI. B. P. KUMAR BABU, VISHNU PAADHAM, NO.132, 4 TH MAIN ROAD, DEFENCE COLONY, INDIRANAGAR, BENGALURU 560 038 ..RESPONDENT PAN : AAPPB6668J ASSESSEE BY : SHRI. S. ANANTHAN, CA REVENUE BY : DR. P. K. SRIHARI, ADDL. CIT HEARD ON : 08.07.2016 PRONOUNCED ON : 08 .07.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : REVENUE THROUGH THIS MISCELLANEOUS PETITION SAY TH AT THIS TRIBUNAL MISINTERPRETED SECTION 2(22)(E) OF THE INC OME-TAX ACT, MP.3/BANG/2016 PAGE - 2 1961, WHILE ALLOWING CLAIM OF ASSESSEE WITH REGARD TO DEEMED DIVIDEND ASSESSED BY THE AO. 02. LD. COUNSEL FOR THE REVENUE SUBMITTED THAT SECT ION 2(22)(E) OF THE ACT, APPLIED EVEN WHERE THERE WAS C OMMON SHARE HOLDER IN TWO COMPANIES, HAVING SUBSTANTIAL INTERES T IN BOTH THE COMPANIES. AS PER THE LD. DR TRIBUNAL HAD GIVEN RE LIEF TO THE ASSESSEE WITHOUT CONSIDERING THIS. 03. PER CONTRA, LD. AR SUBMITTED THAT THE ISSUE STO OD SQUARELY RESOLVED BY THE DECISION OF SPECIAL BENCH IN THE CA SE OF ACIT V. BHAUMIK COLOUR P. LTD [118 ITD 1]. 04. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL SUBMISSIONS. FINDING OF THE TRIBUNAL WITH REGARD T O THE ISSUE RELATING TO ASSESSMENT OF DEEMED DIVIDEND APPEARS A T PARA 7.4.1 TO 7.4.3, WHICH IS REPRODUCED HEREUNDER : MP.3/BANG/2016 PAGE - 3 MP.3/BANG/2016 PAGE - 4 MP.3/BANG/2016 PAGE - 5 05. WE FIND THAT THE SPECIAL BENCH IN THE CASE OF B HAUMIK COLOUR P. LTD (SUPRA) HAS CLEARLY HELD THAT DEEMED INCOME CAN BE ASSESSED ONLY IN THE HANDS OF REGISTERED SHAREHOLDER. ADMITTEDLY ASSESS EE WAS NOT A REGISTERED SHAREHOLDER OF THE COMPANY FROM WHERE THE DIVIDENDS WERE RECEIVED. WE THEREFORE FIND NO MERIT IN THIS PETITION FILED BY T HE REVENUE. 06. IN THE RESULT, MISCELLANEOUS PETITION OF THE RE VENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH DAY OF JULY, 2016. SD/- SD/- (SMT. ASHA VIJAYARAGHAVAN) (ABRAHAM P GEORGE) JUDICIAL MEMBER ACCOUNTA NT MEMBER MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR