2012 (9) TMI 154

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....ng deemed dividend. 2. The appellant craves leave to add, to amend, to alter, to substitute or withdraw any of the Grounds of the Appeal on or before the date of disposal of the appeal. 3. The order is against the law and facts of the case. The brief facts of the case are that assessee is a salried employee/ Director of M/s IBridge Consultants Pvt. Ltd and he filed his return of income on 14-08-2007 declaring an income of Rs. 7,50,000/-. The case was selected for scrutiny and necessary notice u/s 143(2) were issued and served upon the assessee. During course of assessment proceedings, the AO noted that during the year, the assessee earned sum of Rs. 7,50,000/- from M/s IBridge Consultants Pvt. Ltd. being salary @ Rs. 62,500/- per month. F....

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....s has proceeded to treat the salary drawn in advance as loan and thus deemed dividend in the hands of assessee. Reliance was also further placed on the following judgements:- * ITAT No. 2131/Del/2007 September 12, 2008 in the case of Sunil Sethi Vs. DCIT. * ITO vs. Ajanta Cycle (P) Ltd. (2006) 99 TTJ (Chd.) 1159. * CIT vs. Sunil Sethi ITA 569/2009 in the High Court of Delhi dated 03rd Feb, 2010. The Ld. CIT(A) did not consider the submissions of the assessee and upheld the decision of AO relying upon the case as cited Aggrieved the assessee filed appeal before this tribunal. The Ld. AR at the outset argued that assessee was not hit by the provision of 2(22)(e) of the Act as a salary account was a running account and amount at a given p....