Itxa/897/2008 Of The Commissionr Of Income-Tax-6,Mum v. M/S Ajit India (Gujrat)Pvt Latd

date which is 31.3.1993. The CIT(A) in an appealpreferred by the assessee has clearly recorded afinding of fact that there was no accumulated profitavailable to the assessee as on 31.3.1994 and 1.4.1993i.e. on the date on which the loan was shown in thebooks of the appellant company. This finding of factwas not disputed in the appeal preferred by therevenue. The same was not in issue before thetribunal.4. The issue is whether book debt can be treated asdeemed dividend for the purpose of Section 2(22)(e) ofthe Act.5. Considering the finding of the fact recorded onaccumulated profits, this issue need not be gone into.In our opinion, even if, we proceed on the basis thatthe book entry can be treated as dividend,nonetheless, in the instant case, there is noaccumulated profit. The question of law as framed at the instance of revenue is therefore, purely academic. 6. In the light of that, there is no merit in the appeal which is accordingly, dismissed. ( R.S. MOHITE, J.) (F.I.REBELLO, J.)