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TMI Blog2010 (10) TMI 605X X X X Extracts X X X X X X X X Extracts X X X X ..... ions could not be treated as loans or advances received by the assessee from the two concerns - Decided in favour of assessee. - ITA No. 797/Del./2010 - - - Dated:- 29-10-2010 - G.E. Veerabhadrappa, A.D. Jain, JJ. Ashwani Kumar, CA for the Appellant Pratima Kaushik, Sr. DR, for the Respondent ORDER A.D. Jain: This is assessee's appeal for AY 2006-07, taking the following grounds: "1. That the order u/s 250 passed by the Ld.CIT(A)-IV, new Delhi is against law and facts on the file in as much as he was not justified to not adjudicate on the stand of the Appellant company that a substantial part of the business carried out by M/s MGS India Pvt. Ltd., the lender company, was money lending and the loan was adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were being arrived at after estimating the details available in the accounts; and that an amount of Rs.1491257 was to be treated as dividend in the hands of the assessee to the extent of the accumulated profit available. 3. By virtue of the impugned order, the CIT(A), following the decision of the Special Bench (Mum.) of the Tribunal in "CIT vs. Bhaumik Colour Ltd.", 313 ITR (AT) 146 (SB) and "CIT vs. Hotel Hill-Top Ltd.", 313 ITR 116 (Raj.), held that the AO was not justified in making the addition. The AO was thus directed to delete the addition. Aggrieved, the assessee has filed the present appeal. 4. The Ld.Counsel for the assessee has submitted before us that though the addition had been deleted, the CIT(A) erred in not adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the company in either case possesses accumulated profits; but "dividend" does not include- (i) a distribution made in accordance with sub-clause (c) or sub-clause (d) in respect of any share issued for full cash consideration, where the holder of the share is not entitled in the event of liquidation to participate in the surplus assets; (ia) a distribution made in accordance with sub-clause (c) or sub-clause (d) in so far as such distribution is attributable to the capitalized profits of the company representing bonus shars allotted to its equity shareholders after the 31st day of March, 1964, (and before the 1st day of April, 1965). (ii) any advance or loan made to a shareholder (or the said concern) by a company in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the payer company is found to be that of lending of money; that if the income criterion is taken into account, there would be absurd results; and that, therefore, if it was found that the payer company had money lending as it is main object or one of its main objects and the funds deployed during the course of the money lending business were substantial when compared to the total of the other funds deployed for carrying on the other business, the amount given by such payer to any other company would not attract the provisions of section 2(22)(e) of the Act. Reliance was also placed on "CIT vs. Ambassador Travel Pvt. Ltd.", 318 ITR 376 (Del.), wherein, it was observed that where the assessee was involved in the booking of resorts for the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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