9911796707
TMI Blog2019 (3) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... ance amounts received by the assessee from the vendee company of which, he was a director. 3. The assessee, an individual deriving income from salary, house property, capital gain and interest from certain banks etc. was a director in a closely held company M/s Charu Home Products (P) Ltd; and was also a shareholder to the extent he also held 50% of its shares. The assessee declared Rs. 50,32,223/- in the income returned by him which was subjected to scrutiny assessment under Section 143(3). During the course of assessment proceedings, the AO issued a Show Cause Notice as to why the addition ought not to be made with respect to the sum of Rs. 1,01,36,328/- under Section 2(22)(e). Apart from denying the general applicability of that provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. Mr. Krishnan, learned counsel for the assessee contended that the ITAT's order is erroneous because it disbelieved the assessee's submissions principally on the ground that no explanation was given during the course of assessment proceedings. It was urged that once the Rule 46A application was allowed and additional material was brought on record, which was subject to no less than three remands, after which the CIT(A) by a detailed order accepted the assessee's explanation, the ITAT ought not to have interfered with the exercise of discretion in the course of his justified jurisdiction by the CIT(A). The ITAT elaborately noted the sequence of events as well as the nature of the documents presented during the course of proceedings. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 15, Noida. Such Agreement to sell dated 8th June 2009 for an agreed sale consideration of Rs. 8 crores. On 8/6/2009, the assessee entered into a deed of cancellation stating that buyer could not arrange Rs. 6.1 Crores for purchase of the property and hence the Agreement to sell original entered between the assessee and the Company stood cancelled. The assessee stated that the above sum of advance of Rs. 1.81 crores is, therefore, a business advance to which the provisions of deemed dividend does not apply. During the course of remand proceedings, the assessee was summoned and asked that the property was a leasehold property and was to be used for the development. The Company could not raise the funds from the banks, which resulted into c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum in part there was a Deed of Cancellation of Agreement to Sale. It is apparent that the assessee also received on 3/7/2009 a sum of Rs. 308000 and on 27/7/2009 a sum of Rs. 70,000/- only. It is also interesting to note that on 22/7/2009 the assessee was paid Rs. 46.50 lacs by the Company and on 27/7/2009 assessee was also paid Rs. 70,000/- and within 4 days the Company came to know that it is not in a position to raise the further sum of Rs. 6.1 Crores. No evidence or explanation is forthcoming on this point form assessee. The repayment of the sum was also made on 30/3/2010 of Rs. 78 lacs after 8 months of the cancellation deed, which should have been otherwise repaid immediately. There is no claim of interest by the company or any effo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p and a camouflage for giving loan to the assessee by the above Company to avoid contravention of the provision of Section 2(22)(e) of the Act. Assessee also failed to give the adequate evidence and cogent, reliable, and credible evidences about the transaction. The ld. CIT(A) has completely brushed aside finding of the A.O. in remand report and the statement of the assessee and further has not applied his mind to find out the true nature of the transaction. " 7. This Court is of the opinion that the ITAT's decision is based upon an independent analysis of the facts. No doubt it differed from the CIT(A)'s view. At the same time all its findings are based upon appreciation of material facts. Its conclusion are a possible view that can be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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