9911796707
TMI Blog2013 (12) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... by the company and deemed dividend. - I.T.A.No. 261/Ind/2013 - - - Dated:- 21-10-2013 - Shri Joginder Singh, J. M. And Shri R. C. Sharma, A.M.,JJ. For the Appellant : Shri S. S. Deshpande, C. A. For the Respondent : Smt. Mridula Bajpai, CIT DR ORDER Per R. C. Sharma, A. M. This is an appeal filed by the assessee against the order passed by the Commissioner of Income-tax passed u/s 263 of the Income-tax Act, 1961. 2. The Rival contentions have been heard and records perused. Facts in brief are that the assessee is an individual and also Director in Le Merite Exports Private Limited, Mumbai. Return of income was filed showing total income of Rs. 3,50,380/- and agriculture income of Rs. 32,460/-. The case was selected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he credit stood at various points of time between 27.08.2008 to 26.12.2008 which works out to Rs. 13,11,347/- and the some ought to have been assessed as income of the assessee u/s 2(22)(e) of the Income-tax Act, 1961. But AO have omitted to invoke the section as per the facts in this case. 1.5) Based on the facts and figures above vis-a-vis your claim made in the return of income and the supporting documents lying on record, the AO while passing the assessment order u/s 143(3) have not made necessary enquiries and verification which were warranted on the basis of the facts as operating in your case. This makes the order of the AO not only erroneous but also prejudicial to the interest of the revenue. Before proposing to hold so, as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been purchased in the name of Shri Abhishek Lath and his mother Smt. Asha Devi Lath. The assessee in his submission has stated that the lady has a 30% share in the said property though no shares have been defined in the sale deed. The advances made for Flat were adjusted against the credit balance in the account of Shri Puneeet Textiles and Shri Umashankar Lath. If these amounts are considered then there is no debit balance in any of the accounts. Without prejudice to this, it was further submitted that Smt. Asha Devi Lath is a joint owner and 50 % of the advance be treated to have been given to her. Smt. Asha Devi Lath is not a shareholder in the said company. All these copies of accounts were filed during the course of the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest. Even the advance given by the company for purchase of property in the name of assessee also amounts to advance by company to the assessee, therefore, attracts the provisions of Section 2(22)(e). However, at the very same time, addition u/s 2(22)(e) cannot be more than accumulated profit of the company as at the beginning of the relevant financial year under consideration. Accordingly, we modify the order of CIT and direct the Assessing Officer to first ascertain the factual position and the quantum of advances having been made by the company and give due credit for the various credit balance assessee was having in different accounts, copy of accounts were furnished by ld. Authorized Representative before us. If the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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