COMMISSIONER OF INCOME TAX Vs. KHANDELWAL ASSOCIATES

JUDGEMENT

(1.) WE have heard Shri Shambhu Chopra, learned counsel for the income tax department.

(2.) IN this income tax appeal under Section 260A of the Income Tax Act, the revenue is aggrieved by the order of the Income Tax Appellate Tribunal (ITAT) dated 02.03.2012 by which the Tribunal has affirmed the order of CIT (A), allowing the appeal to the effect that the loan totalling Rs.48,20,549/ - was treated by the A.O. as deemed dividend under Section 2 (22) (e) read with Section 56 (2) (i) of the Act.

(3.) WE do not find that any discussion in the judgment of ITAT in which finding of fact recorded by CIT (A) were challenged to the effect that though, in form, the amounts drawn by the appellant from Khandelwal Cables Limited appear as advances/ loans, in substance the appellant firm has received the impugned amounts of and from its own partners, though through Khandelwal Cables Limited. This was no different from repayment by Khandelwal Cables Limited of the deposits of the appellant's partners and introduction thereof by the partners in the appellant firm.