2014 (1) TMI 1547

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.... support to the assessment order. However, nobody is present for the assessee. Registered AD notice was sent to the assessee on 16th July, 2013. In spite of that, the assessee neither presented himself nor moved any adjournment petition, therefore, we have no option but to proceed ex parte qua the assessee and tend to dispose of this appeal on the basis of material available on record. 3. We have considered the submissions put forth by the learned Senior DR and have gone through the material available on record. The facts, in brief, are that the assessee is engaged in the business of trading of pesticides, bio-fertilizers, organic manure and C&F activities, declared income of Rs. 34,72,400/- in its return filed on 25th September, 2008. S....

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....imited and by applying the provisions of section 2(22)(e) of the Act the addition of Rs.14,63,400/- was made to the total income of the assessee being deemed dividend. The stand of the assessee right from the assessment stage had been that the provisions of section 2(22)(e) of the Act are not applicable to trade transactions more specifically when such advance is made during the course of business of the assessee. The stand of the Revenue is that if the company makes any payment to any share holder either by loan or advance, in both situations, the provision of section 2(22)(e) of the Act is attracted. The assessee duly filed the copy of ledger account of M/s Jayvin Sales Private Limited evidencing that the amounts were paid in the regular ....