Bombay High Court
The Pr. Commissioner Of Income Tax ... vs M/S. Leela Lifescience Pvt. Ltd., ... on 24 November, 2021
Bench: A.S. Chandurkar, G. A. Sanap
210-ITL-14-16.odt 1/2
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR.
INCOME TAX APPEAL (ITL) NO.14 OF 2016
The Pr. Commissioner of Income Tax-I, Aaykar Bhawan, Civil Lines, Nagpur
-vs-
M/s Leela Lifescience Pvt. Ltd. Pt. No.41, Leela House, North Ambazari Road, Nagpur
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Office notes, Office Memoranda of
Coram, appearances, Court's orders Court's or Judge's Orders.
or directions and Registrar's orders.
Shri Abhishek Bhoot, Advocate with Shri S. N. Bhattad, Advocate for
appellant.
Respondent served.
CORAM : A. S. CHANDURKAR AND G. A. SANAP, JJ.
DATE : November 24, 2021
Heard.
While admitting this appeal, the following substantial
question of law was framed :
" Whether the ITAT is right in law in holding that the
addition on account of deemed dividend of Rs.4,20,56,666/-
was correctly deleted by the learned CIT (Appeals) holding
that the assessee company was not a registered share-holder
of the lender company M/s Leela Ventures India Private
Limited although there is no such requirement in the
provisions of Section 2(22)(e) of the Income Tax Act,
1961 ? "
The Income Tax Appellate Tribunal, Nagpur while
considering the appeal preferred by the Revenue against the
deletion of additional claim on account of deemed dividend
under Section 2(22)(e) of the Income Tax Act, 1961 on the
ground that the assessee-company was not a registered share-
holder of M/s Leela Ventures India Pvt. Ltd. from whom the
advance was received maintained such deletion by relying upon
the judgment of this Court in Commissioner of Income Tax vs.
210-ITL-14-16.odt 2/2
Impact Containers P. Ltd.(and connected appeals) 2014(367) ITR
346. It was held in the aforesaid decision that it was necessary
for the assessee-company to be a registered share-holder of the
company from whom the advance was received. This appeal
was admitted after noting the fact that the aforesaid decision in
Impact Containers Pvt. Ltd. (supra) was challenged before the
Honourable Supreme Court and the said challenge was pending.
Shri A. Bhoot, learned counsel for the appellant submits
that during pendency of this appeal, Civil Appeal No.1141/2015
alongwith other connected appeals was decided by the
Honourable Supreme Court on 15/10/2017 and those appeals
were dismissed affirming the judgment under challenge.
As a result, it is clear that the Tribunal was justified in
maintaining the deletion of addition that was made on account
of deemed dividend by holding that the assessee-company was
not a registered share-holder of the lender-company M/s Leela
Ventures India Pvt. Ltd. The substantial question of law as
framed is therefore answered against the Revenue and the order
passed by the Income Tax Appellate Tribunal on 24/09/2015
stands confirmed.
The Income Tax Appeal stands dismissed with no order as
to costs.
(G. A. Sanap, J.) (A. S. Chandurkar, J.)
Digitally signed byASMITA
ADWAIT
AsmitaBHANDAKKAR
Signing Date:25.11.2021
16:06:07
