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TMI Blog2016 (10) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... e agree with the assessee that there was a running account of the assessee with OCG and for most of the period, there was huge debit balance of the company and it is only for few days there was a meager credit balance of the company. In our opinion, such meager balance of the company for a few days in a running account wherein there was huge debit balance of the company for months together cannot be said to be loan and advance so as to attract provisions of Section 2(22)(e) of the Act. In view of the above, we hold that on the facts of this case, Section 2(22)(e) was wrongly applied - Appeal of the assessee is allowed. - ITA No. 401/Del/2010 - - - Dated:- 28-10-2016 - SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KULDIP SINGH, JUDICIAL MEMBER For the Appellant : Shri Gaurav Jain and Shri Sahil Mehta, Advocates. For the Respondent : Shri N.K. Bansal, Senior DR. ORDER PER G.D. AGRAWAL, VP :- This appeal by the assessee for the assessment year 2006-07 is directed against the order of learned CIT(A)-XXIII, New Delhi dated 3rd December, 2009. 2. The only ground raised in this appeal by the assessee is against the addition of ₹ 28,46,927/- as deemed di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 22 lakhs on 11th February, 2006 resulting in total credit balance of ₹ 28,46,927/-. Thus, credit balance of the company with the assessee was in the nature of loan and advance and Section 2(22)(e) was rightly applied by the Assessing Officer and rightly sustained by learned CIT(A). The assessee has not produced any documentary evidence that the amount was given to the assessee in his capacity as director of the company for acquiring the immovable property of the company. Therefore, this contention is rightly rejected by the CIT(A). He also stated that the assessee is a substantial shareholder of OCG and OCG has accumulated profit. Therefore, all the conditions for applicability of Section 2(22)(e) are duly satisfied. He, therefore, requested that the order of learned CIT(A) should be sustained. 5. We have carefully considered the submissions of both the sides and perused the material placed before us. For applicability of Section 2(22)(e), apart from other conditions, the amount received by the shareholder should be in the nature of loan or advance. Let us examine the account of the company with the assessee which reads as under :- Satish Kumar Gupta GENERAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt Ltd 2000000.00 24203073.00 DR 09/Jun/2005 BR/0001 Chq recd from OCG Pvt Ltd 1000000.00 23203073.00 DR 11/Jun/2005 BR/0001 Chq recd from OCG Pvt Ltd 400000.00 22803073.00 DR 13/Jun/2005 BR/0001 Chq recd from OCG Pvt Ltd 1200000.00 21603073.00 DR 15/Jun/2005 BR/0001 Chq recd from OCG Pvt Ltd 150000.00 21453073.00 DR 15/Jun/2005 BR/0002 Chq recd from OCG Pvt Ltd 400000.00 21053073.00 DR 11/Aug/2005 BP/0001 Chq issd to OCG Pvt Ltd 500000.00 21553073.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 2153073.00 DR 03/Jan/2006 BR/0001 Chq recd from OCG Pvt Ltd 1000000.00 1153073.00 DR 10/Jan/2006 BR/0001 Chq recd from OCG Pvt Ltd 500000.00 653073.00 DR 19/Jan/2006 BR/0001 Chq recd from OCG Pvt Ltd 800000.00 -146927.00 CR 01/Feb/2006 BR/0001 Chq recd from OCG Pvt Ltd 500000.00 -646927.00 CR 11/Feb/2006 BR/0001 Chq recd from OCG Pvt Ltd 2200000.00 -2846927.00 CR 27/Feb/2006 BP/0002 Chq issd to OCG Pvt Ltd 2531866.70 -315060.30 CR 31/Mar/2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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