TaxTMI 
TaxTMI 
2013 (7) TMI 314
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....the Learned Commissioner of Income Tax (Appeals)-38 erred in upholding the additions made u/s 2(22)(e) by the Learned Assistant Commissioner of Income Tax, Central Circle 45, by erroneously holding that the marginal overdrawing/debit balance of Rs.1,46,467/- by the assessee director represented advance or loan to a shareholder, and hence covered by the provisions of section 2(22)(e). The appellant craves leave to add, alter, modify the above grounds." ITA/3903/M/11-AY.2005-06 "On the facts and circumstances of the case, and in law, the Learned Commissioner of Income Tax (Appeals)-38 erred in upholding the additions made u/s 2(22)(e) by the Learned Assistant Commissioner of Income Tax, Central Circle 45, by erroneously holding that the marginal overdrawing/debit balance of Rs.7,03,407/- by the assessee director represented advance or loan to a shareholder, and hence covered by the provisions of section 2(22)(e). The appellant craves leave to add, alter, modify the above grounds." ITA/3904/M/11- AY.2006-07 "On the facts and circumstances of the case, and in law, the Learned Commissioner of Income Tax (Appeals)-38 erred in upholding the additions made u/s 2(22)(e) by the L....
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..../s. 143(3) rws.153A Assessed income Dt. of CIT(A) order 3901/2005-06 25-04-2007 5,63,781 17-12-2007 12,94,000 31-01-2011 3902/2006-07 25-04-2007 8,55,472 17-12-2007 12,74,960 31-01-2011 3903/2005-06 25-04-2007 5,63,452 17-12-2007 13,79,293 31-01-2011 3904/2006-07 25-04-2007 11,81,703 17-12-2007 20,01,710 31-01-2011 3905/2005-06 25-04-2007 5,65,582 17-12-2007 12,63,172 31-01-2011 3906/2006-07 25-04-2007 10,21,527 17-12-2007 12,66,550 31-01-2011 3907/2005-06 25-04-2007 5,73,704 17-12-2007 15,06,616 31-01-2011 3. A search and seizure action conducted on 21-03-2006 in M/s. Atlas Travels and Tours Pvt. Ltd., and its group concerns. M/s.Atlas Travels and ToursP.Ltd.;a flagship company of Atlas Travels Group;is engaged in the business of national and inter- national air-ticketing and conducting Haj/ Umrah Tours.The business of Atlas Group was conducted and controlled by Afzal Patel along with his three brothers S/Shri Kasam Patel, Sayeed Patel & Rizwan Patel and Nephews, Rehmat Kasam Patel, Noor Mohammed Patel and Suleman Kasam Patel.After the action carri....
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....d on the issue of Deemed Dividends liable to be taxed u/s 2(22)(e) of the Act. After considering the written submissions and contentions raised during the appeal proceedings; with the support of the judicial decisions; he held that the appellant was a director-share holder with a substantial share-holding interest in the company with which he had been maintaining a current account, that the appellant had been maintain -ing a credit balance with the company for the time and with substantial amounts to his credit, that for a short period of time there existed a debit balance of the appellant due to the overdrawl, that all the conditions stipulated to treat such a payment as Deemed Dividends were satisfied in terms of section 2(22)(e) of the Act, that the case under consideration was not covered by the exceptions mentioned in the section. Relying on the order of Raj Kumar delivered by the Hon'ble High Court of Delhi (318ITR462)he held that that the payment in question was in the nature of advance that required repayment, it was evident by the subsequent act of repayment made by the appellant, that the payment was not in the nature of a trade advance to be settled by a commercial trans....
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....ble Courts have defined, explained and analysed the said terms while pronouncing various judgments. But, the basic question to be answered in the case under consideration is whether the transactions could be termed deposits. We find that assessee had not led any evidence before the FAA or us as these were so called deposits. Any correspondence entered into by the assessee and the company; evidencing the proof that transaction under consideration were deposits; has not been produced. FAA has given a categorical finding that these transaction were loan and advances and all the conditions stipulated by the provisions of section 2(22)(e) of the Act were fulfilled. We find that basic conditions substantial interest in the company and loan/advances by the company to the assessee were satisfied and therefore AO and the FAA in the first round and the FAA in the second round of hearing had held that amounts in questions were Deemed Dividends. Besides, proof of utilisation of amounts-in-question for business of the company were never produced at any stage. As per the established principles of tax jurisprudence if the authorities of the income tax department want to tax a particular item as t....