9911796707
TMI Blog2013 (11) TMI 1746X X X X Extracts X X X X X X X X Extracts X X X X ..... 80IB of the Income Tax Act of ₹ 41,22,946/- without appreciating the facts brought o record by the Assessing Officer during the course of assessment proceedings. 2. Learned D.R. of the Revenue supported the assessment order whereas the learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that this issue is now covered in favour of the assessee by Tribunal decision in assessee's own case for assessment year 2005-06 and 2006-07 as per Tribunal order in I.T.A. No.474/Lkw/12 dated 22/03/2013 and I.T.A. No.376/Lkw/2011 dated 28/05/2013 for assessment year 2005-06 and 2006-07 respectively. Copy of the order was submitted. 3. We have considered the rival submissions and we find that a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gaged in the business of money lending therefore, provisions of section 2(22)(e) of the Act are not applicable. 6. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below. As per the memorandum of these companies, available in the paper book, it is found that the main objects of these two companies were not to engage themselves in money lending business although as per clause No. 3 of the objects clause, it is listed as ancillary object to invest and deal with the funds of the company not immediately required in such investments or securities and in such manner as shall from time to time be thought necessary for the benefit of the company. Hence, merely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which requires that even if the loan is given by the company to the shareholder in the ordinary course of business, it has to be seen that lending of money is substantial part of the business of the company. On this aspect, it was held by the Tribunal that if the money lending business of the lender company constituted more than 20% of the total business of the company, the lending of money could be said to be substantial part of the business of the company. In the present case, the assessee is not satisfying with the first requirement of this clause that the loan in question was given by the lender in the ordinary course of business and therefore, there is no requirement of examining the second part of the stipulation as to whether such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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