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TMI Blog2014 (2) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... and earns income by way of interest and dividend, in the absence of any other materials, a different finding is not possible - Certain materials had been produced to indicate that subsequent to the assessment year, certain loans were given to other persons - Since the Tribunal and the first appellate authority have considered the entire facts of the case and confirmed the order of the assessing officer - there is no material to indicate that the appellant is entitled for the benefit of exclusion as stated in Section 2(22)(e)(ii) of the Income- tax Act – Decided against Assessee. - ITA. No. 9 of 2013 - - - Dated:- 15-1-2014 - Dr. Manjula Chellur CJ And A. M. Shaffique,JJ. JUDGMENT Shaffique, J. This appeal is filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with relevant accounts were being filed by both the company as well as late Sri. K.C. Oommen showing the particulars of loan and other details. It is also contended that the amounts in question were advanced to M/s. Mannar Trust Fund, a proprietary concern of the assessee, as part of the money lending business of Thottakkad Estates (P) Ltd. In fact, Thottakkad Estates Limited had sold their property and they have not shown any income from agricultural operations. The assessing officer found that the Managing Director of the Company was the only person to whom the company advanced money and the company was fully engaged in activities like investment in shares and debentures and money lending was not its regular activity. In the said circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee to pursue further remedy on rejection of objections is sustainable? (vi) Whether when the nature of money advanced by the assessee are not from accumulated profits, can such advance be classified as deemed dividend? (vii) Whether in the facts of the case, the money given as a loan to the Trust can be regarded as deemed dividend especially in the light of Section 2(22)(ii) of Income-tax Act 1963?" 7. As far as grounds (i) to (iii) are concerned, the matter is covered by the judgment of the Supreme Court in Asst. C.I.T. v. Rajesh Jhaveri Stock Broker (P) Ltd., 291 ITR 500. Insofar as the original assessment is not completed, it cannot be stated that an opinion was formed earlier to attract any limitation. Therefore, the short qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contend that it is not necessary to constitute trade that there should be a series of transactions, both of purchase and of sale. A single transaction of purchase and sales outside the assessee's line of business may constitute as adventure in the nature of trade. Even if the activity is not repeated or continued, nevertheless it constitutes a transaction which is an adventure in the nature of trade. On this basis, it is contended that even if the company had given loan only to one person during the relevant time, it amounts to a substantial business of the company. We do not think that the facts involved in the above judgment of the Supreme Court has any application to the facts on hand. This is an instance where the only beneficiary of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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