Chief Justice's Court Case :- INCOME TAX APPEAL DEFECTIVE No. - 88 of 2014 Appellant :- Asstt. Commissioner Of Income Tax Respondent :- Ats Promoters And Builders Pvt. Ltd. Counsel for Appellant :- Dhananjay Awasthi Counsel for Respondent :- Krishna Agrawal Hon'ble Dr. Dhananjaya Yeshwant Chandrachud,Chief Justice Hon'ble Pradeep Kumar Singh Baghel,J. filing of certified copy of impugned order is exempted. appeal by Revenue, under Section 260A of Income Tax Act, 19611 arises from common order of Income Tax Appellate Tribunal2 dated 31 January 2014. assessment year to which appeal relates is AY 2005-06. following questions of law have been formulated by Revenue: (1) Whether ITAT erred in law in deleting addition made under Section 2 (22) (e) as deemed dividend ignoring fact that Directors of both Companies are same and have more than 20% of shareholding in both Companies and loan was given interest free, hence are covered under definition of Section 2 (22) (e) as all pre-conditions are met. (2) Whether ITAT erred in law in deleting addition which was based on difference in two balance sheet and for which no explanation was provided by assessee to explain difference in sundry creditors so much so that A.O. had invoked powers under Section 145 (3) and added amount as per Section 68. 1 Act 2 Tribunal 2 (3) Whether ITAT erred in law in deleting interest chargeable from customers when it is clear that assessee had been charging interest on delayed payments and did not declare it under head income from other sources. Learned counsel for Revenue and learned senior counsel appearing on behalf of assessee are agreed in stating that question nos.1 and 3 shall stand governed against Revenue by judgment of this Court rendered today in companion Income Tax Appeal Defective No.86 of 2014. Insofar as question no.2 is concerned, findings, which has been recorded by Tribunal, are as follows: Schedule-K to balance sheet has been placed on page No.60 of paper book. current liabilities in this schedule has been shown at Rs.87,37,660. details of this amount has been attached with computation of income and copy of details are available on page 116 of paper book. assessee has shown ATS Infrastructure Pvt. Ltd. as its creditors for sum of Rs.6,62,543. Similarly, Madhu Electricals has been shown at Rs.75,117. At page Nos.118 to 125, copy of ledger account of ATS Infrastructure and Madhu Electricals as well as other have been placed on record. On strength of these financial statements, it was demonstrated before us that paper relied upon by Assessing Officer is rough calculation which does not contain date on which this paper was prepared and also it is not signed by any 3 person. This cannot be forming part of Schedule-K of balance sheet. It is also demonstrated that this paper was not filed by assessee along with return. It must have been taken out from various details seized or complied in connection with any other year or in case of any other assessee. On due consideration of this material and paper book as well as finding of learned CIT (Appeals), we are of view that ld. Assessing Officer failed to examine aspect analytically and without applying mind has made addition. This is purely finding of fact by Tribunal. Learned counsel for Revenue has not established before Court that finding is perverse or that it is contrary to weight of evidence on record. Hence, appeal, by Revenue, will not give rise to any substantial question of law. appeal is, accordingly, dismissed. There shall be no order as to costs. Order Date :- 3.11.2014 RKK/- (P.K.S. Baghel, J) (Dr. D.Y. Chandrachud, CJ) Asstt. Commissioner of Income-tax v. Ats Promoters And Builders Pvt. Ltd