9911796707
TMI Blog2015 (10) TMI 1605X X X X Extracts X X X X X X X X Extracts X X X X ..... a narrow campus. The assessee is a director in M/s.B.Patel Infrastructure Pvt.Ltd. He holds more than 10% of its shares. The Assessing Officer noticed him to have withdrawn excess amount of Rs. 11,24,237/-. He sought to invoke deemed dividend addition u/s.2(22)(e) of the Act by treating the same as loans and advances. The assessee pleaded to have worked as a sub-contractor giving his tractor car machinery on hire basis to the company having value of more than Rs. 55 lacs. He submitted that the company had taken possession thereof by paying him a refundable deposit sum of Rs. 12.50 lacs. The Assessing Officer observed in order dated 30/11/2010 that the assessee had withdrawn excess amount to the tune of Rs. 9,81,400/- from 01/04/2005 onward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/8/2005 to 30/11/2005, assessee had withdrawn Rs. 9,78,800/- out of which Rs. 2,91,000/- were adjusted by way of salary & machinery rent. From 1/8.2005 to 30/11/2005 assessee has withdrawn Rs. 289000/-, Rs. 200000/- by way of salary adjustment were recovered. From 1/12/2005 to 31/12/2005, Rs. 480000/- were received, Rs. 190000/-were adjusted by way of salary & machinery rent. From 1/1/2006 to 28/2/2006 assessee has received Rs. 249077. In the month of March, assessee has received Rs. 981400/-. Not only is the claim of the appellant is proved wrong from the accounts but also it is clearly an afterthought and a story when viewed from the angle of probabilities of human behavior and business practices. It is seen that the total value of thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Qualish car rental income of Rs. 1,44,000/-. His books record tractor rental income as Rs. 15,01,000/-. The Revenue does not dispute the assessee's fixed assets in the shape of aforesaid vehicles. We find value of its tractor-trolly to be Rs. 37,45,500/- and Qualish Car that of Rs. 3,98,496/-. The assessee's books nowhere treat the sums received as loans and advances to have been received from the aforesaid company. The company's report at page-16 does not disclose any such loan or advance to the assessee. The authorities below nowhere observe anything about accumulated profits so as to invoke section 2(22)(e) of the Act. We reiterate that this section stipulates addition of a deemed income statute liable to be strictly interpr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
