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(D) Your honour is requested to kindly refer to the decision of the ITAT of Bench "B", Kolkata in the matter of MIS Sree Krishna Gyanodya Flour Mills Pvt. Ltd. Vs. Pr. Commissioner of Income Tax, Central, Kolkata-2 in which the Hon'ble bench "B" Kolkata squarely covered and held that the transactions which represents as several occasions as taken place during the financial year which is in nature of current account transactions therefore deemed divided is not applicable. We again attached herewith the above judicial pronouncement Vide page No - 59 to 64. Your kind attention is also invited to the decision of ITAT bench "B" Delhi M/s Exotica Housing and Infrastructure Company Pvt. Ltd. Vs. Income Tax Officer Ward- 8(4),New Delhi , in which it is decided that the financial transactions between holding and subsidiary company is not under preview of deemed dividend as the financial transactions taken place in several occasions during the financial year and balance at the end of the year is zero. Kindly refer to the page No 65 to 78 with our additional paper book. In our case, it -is also reflected in the ledger which is clearly showing the transaction are purely temporarily financial accommodation for the business purpose as taken place at several occasion during the financial year. In such cases, section 2 (22)(e) would not be attracted. It is also to be noted that where the I.T.A No.174/Kol/2019 & I.T.A No.292/Kol/2019 Assessment year: 2014-15 M/s Merino Industries Ltd transaction between holding and subsidiary is not in nature of loan the decision of Smt Tarulata Shaym v. CIT is not applicable at all. In our cases it is also to be noted importantly that the outstanding balance of same ledger is zero at the end of the financial year in such cases applicability of deemed dividend is zero. We also invited the judicial pronouncement of Madras High court in the case of Sunil Kappor V Commissioner of Income tax in which the Honourable high court mentioned that deemed dividend is not applicable where balance at the end of the financial year is zero because of repayment during the year is to be considered by the A.O. (E) It is also to be noted that the deeming provision of section 2 (22)

(F). Your honour is requested to kindly vide the stand of department of Income Tax where it is established that the deemed dividend is not applicable on such financial transactions between your appellant company and its subsidiaries company. The remand report is also attached herewith for your kind reference. We rely on the remand report and with the stand as established by the department of Income Tax in the remand report.

Your honour is requested to kindly consider the financial transaction between your appellant company and its subsidiary company as financial accommodation in nature of current account and out of the applicability of deemed dividend u/s 2 (22)(e) on the basis of :-

"In view of the above, the following points are need to be highlighted;
1. The assessee company availed unsecured financial accommodation for working capital and other operational needs with M/s. Merino Panel Products Limited and the assessee company stated that the transaction is purely in nature of current account for business requirement which gave benefits to both the companies. The financial transaction to / from is in the ordinary course of business.

In view of the above, in the assessee's own case assessments during the AY- 2010-11 and AY-2011-12, the then AO has not made any additions on account of 2(22)(e), though there were loan accommodation transaction between the subsidiaries companies Merino Panel Products limited and Merino Industries Limited, the assessee submitted Assessment Orders or AY-2010-11 and AY-2011-12 and board resolutions agreeing unsecured financial accommodations between the subsidiaries which shows there is a consistent practice of financial transaction(loan accommodation between the subsidiaries are in general course of business Therefore, deemed dividend is not applicable in such cases of transactions."