BHARATI SAPRU,J. - (1.) This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act), against the order of the Income Tax Appellate Tribunal, Lucknow Bench dated 30.11.2005 for the Assessment Year 1995-96 on the following questions of law:- "(1) Whether the Provisions of Section 2(22)(e) of the Act applies to the facts and circumstances of the case? (2) Whether on the facts and in the circumstances of the case, the amount of Rs. 3,80,00,000/- could be treated as a deemed dividend within the meaning of Section 2(22)(e) of the Act? (3) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the addition of Rs. 3,80,00,000/- made by the A.O. as deemed dividend under section 2(22)(e) of the Act?"
(2.) At the very outset, learned counsel for the revenue states that the question no.2 covers the entire controversy raised by the revenue.
(3.) For the previous year relevant to the Assessment Year 1995-96 the assessee disclosed a credit balance of Rs. 3,75,26,099/- standing in the name of a sister concern of the assessee, Goel Investments ltd. (hereinafter referred to as the GIL). During the assessment proceedings, the Assessing Officer proposed to tax the said amount treating the same to be deemed dividend under Section 2(22)(e) of the Act.;