COMMISSIONER OF INCOME TAX Vs. ANKITECH PVT LTD

JUDGEMENT

(1.) In all these appeals, same questions of law touching the interpretation that is to be accorded to the provisions of Section 2(22)(e) of the amount received by the Income Tax Act (hereinafter referred to as =the Act'), arise for consideration. Our purpose would be served by taking note of the questions of law framed in ITA No.462 of 2009, as concededly answer thereto shall cover the outcome of all these appeals. The substantial questions of law on which this appeal was admitted are as under:

(2.) Though as many as four questions are framed, it is with singular focus, viz., whether the assessee who was not the shareholders of M/s. Jackson Generators (P) Ltd. (JGPL) could be treated as covered by the definition of =dividend' as contained in Section 2(22)(e) of the Income Tax Act (hereinafter referred to as =the Act'). This issue has arisen under the following circumstances.

(3.) The assessee filed the return declaring income at =Nil' under normal provisions but at '1.45 Crores under Section 115JB of the Act. During the assessment proceedings, the Assessing Officer (AO) noticed that the assessee company had received advances of '6,32,72,265/- by way of book entry from JGPL and the shareholders having substantial interest in the assessee company were also having 10% of the voting power in JGPL. The AO specifically took note of the share-holding pattern in the assessee company as well as in JGPL, which was as following: