HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR
I.T.T.A.No.605 OF 2014
DATED: 10.09.2014 Between:
Commissioner of Income Tax-II … Appellant and M/s.Talwar Mobiles Private Limited … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR
I.T.T.A.No.605 of 2014
JUDGMENT: (per the Hon’ble The Chief Justice Sri Kalyan Jyoti Sengupta)
The Tribunal has followed the decision of the Special Bench of the Tribunal in the case of Bhaumik Colour P. Ltd (313 ITR (AT) 43) wherein it has been held that in order to invoke the provisions of Section 2(22)(e) of the Income-tax Act, 1961, assessee-company itself must be a shareholder in the other company, and mere existence of common shareholders would not justify the invoking of the provisions of the said Section. We are of the view that the decision of the Tribunal is absolutely correct. We do not find infirmity therein.
Hence, the appeal is dismissed. No order as to costs.
Pending miscellaneous petitions, if any, shall stand closed.
10th SEPTEMBER, 2014.
K.J. SENGUPTA, CJ SANJAY KUMAR, J kvni