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TMI Blog2012 (4) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... in ordinary course of money lending business. Further, documents show that company was doing the business of import and export and it was a recognized export house. Order of Tribunal is upheld in attracting provisions of clause (ii) of section 2(22)(e) – Decided against the assessee. - ITA 224/2012, ITA 225/2012, ITA 226/2012 - - - Dated:- 30-3-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A M Overseas Pvt. Ltd. The appellant-assessee had before the Tribunal for the first time raised a contention relying upon Clause (ii) to Section 2(22)(e) and had submitted that the advance or loan given to the shareholder was in normal course of business, where lending of money was substantial part of business of the company. The Tribunal has rejected the said contention in view of the factual m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case, most of the advances have been given interest free. The interest free loans and advances cannot be said to be made in ordinary course of money lending business. Net interest income and loan and advances at the end of relevant F.Y. were as under :- F.Y. Loan Advance Net Interest Income 2000-01 Rs.4,99,82,880/- (20 parties) Rs.7,68,190/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be termed as a business of lending money. No business can be carried out without the intention of profit or earning. In cases relied upon by the assessee, cited supra, the loan and advances were interest bearing. In this case, the loan and advances made to the assessee were interest free. Therefore, in our considered view, these advances or loan received by the assessee in its proprietorsh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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