9911796707
TMI Blog2012 (6) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of business against remuneration/business expenses to be deemed dividend u/s.2(22)(e) of the Act. 2. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) r.w.s. 147 dated 26/12/2008 were that the assessee in individual capacity was asked to explain the basis of loans and advances of ₹ 3,33,550/- form M/s. Foremost Finvest Pvt. Ltd. in the capacity of a Director and a Shareholder having substantial interest in the business affairs with the holding of 16.23% shares of the said company. It was explained that the said amount was received at different dates on account of advance to Director s remuneration traveling and other expenses. It has also been explained that those advances were adjusted again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. House Electricity (Elec.Co.) Through Journal ₹ 1,17,340 7. Cash Paid (To appellant) ₹ 40,000 Total Debited (A) ₹ 5,13,550 -- Director s Remuneration ₹ 1,80,000 Total Credited (B) ₹ 1,80,000 Net Debit Balance (A-B) ₹ 3,3,550 4. From the above details, it was observed that the assessee had received the impugned amount ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2012) 338 ITR 538 (Cal.) 6. On the other hand, from the side of the Revenue, Ld.Sr.DR Mr.Shyam Prasad has placed reliance on the order of the Assessing Officer. 7. Having heard the submissions of both the sides, we are of the view that the issue now stood covered in favour of the assessee by several decisions of Hon'ble Courts. In the case of CIT vs. Creative Dyeing Ptg. 318 ITR 476 it was held that if the nature of advance is not loan but in the nature of business transaction; which is to be adjusted against the money payable by the latter to the assessee then the same shall not fall within the definition of deemed dividend u/s.2(22)(e) of the Act. Likewise in the case of ACIT vs. Harshad V.Doshi 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
