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TMI Blog2016 (12) TMI 1772X X X X Extracts X X X X X X X X Extracts X X X X ..... as at the end of the year. HELD THAT:- The amount of ₹ 31,57,569/- is outstanding as a loan/advance being the amount excess drawn in the current account, which is nothing but a loan/advance because of the transfer of the company asset to the assessee. Though, the amount paid is not in cash, the asset of the company (money s worth) was transferred to the assessee resulting into reduction of the assets of the company and the ultimate result is outstanding as a loan from the assessee. Therefore, the transfer of assets which resulted in a advance/loan is held to be payment by the company to the assessee and falls within the four corners of the deemed dividend as per the provisions of the Sec. 2(22)(e) of the Income Tax Act . See KANTIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same is condoned. 2. The assessee filed return of income for the AY 2008-09 and later on the AO issued notice u/s.148 and completed the assessment u/s.147 r/w Sec.143(3) on a total income of ₹ 17,26,790/-. During the reassessment proceedings, the AO found that the assessee is a Director and having more than 10% share holding in M/s.Shree Velu Builders (P) Ltd., a company in which public are not substantially interested. It was also noticed by the AO that the company was having accumulated profits of ₹ 84,51,787/- as on 31.03.2007 and it has transferred the flat constructed by the company valued at ₹ 38 lakhs to the assessee. After transfer of the flat of ₹ 38 lakhs, the outstanding balance in the cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (22)(e) of Income Tax Act. On the other hand the Ld.A.R. relied on the orders of the Ld.CIT(A) and the orders of this tribunal in his own case. 5. We heard the rival submissions and perused the orders of the lower authorities. As per Sec.2(22)(e) of the Income Tax Act deemed dividend is - any payment by a company, not being company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) by way of advance or loan to a shareholder being a person who is the beneficial owner of shares holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be payment by the company to the assessee and falls within the four corners of the deemed dividend as per the provisions of the Sec. 2(22)(e) of the Income Tax Act. The Hon ble Supreme Court in the case of Kanthilal Manilal Vs. CIT (41 ITR 275) held that Dividend need not be distributed in money; it may be distributed by delivery of property or right having monetary value . We reproduced the relevant extract of the Hon ble Supreme Court cited supra. Dividend need not be distributed in money; it may be distributed by delivery of property or right having monetary value. The resolution, it is true, did not purport to distribute the right amongst the shareholders as dividend. It did not also take the form of a resolution for distribution ..... X X X X Extracts X X X X X X X X Extracts X X X X
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