KISHORILAL AGRAWAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal by the assessee arises from a decision of the Income Tax Appellate Tribunal dated 29 November 2013. The assessment year to which the appeal relates is Assessment Year 2007-08. The assessee has raised several questions of law of which the following would cover the controversy which is raised in the appeal:-

(2.) The assessee had taken an interest bearing loan from two companies in which the assessee holds more than 10% of the shares. The assessee received a loan of Rs.95,225/- from a company by the name of Kukki Color Photos Pvt. Ltd. and Rs.11,55,230/- from Kukki Color Prints Pvt. Ltd. The Assessing Officer made an addition of Rs.12,50,445/- under section 2(22)(e) of Income Tax Act, 1961 on the ground that the assessee holds more than 10% of the shares in both the companies and since the companies had sufficient accumulated profits, the loans and advances should be assessed as deemed dividends in the hands of the assessee. The Commissioner of Income Tax (Appeals) deleted the addition with the following findings:-

(3.) The Tribunal has set aside the finding of the CIT(A) and has restored the addition which was made by the Assessing Officer.