2014 (2) TMI 475

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.... & Advance to the assessee i.e. Director of the company which was duly returned back to the company in the next financial year. So it should not be treated as deemed dividend but as loan & advance. So the additions made should be deleted." 3. The facts of the case are that the assessee is a director as well as major shareholder in M/s CCS Computer Private Limited holding 45% of the shares of the said company. As per the balance sheet of the said company as on 31st March, 2006, there is an accumulated profit of Rs. 2,08,05,323/-. The Assessing Officer has recorded the finding that during the accounting year relevant to the assessment year under consideration, M/s CCS Computer Private Limited has advanced the loan of Rs. 56,70,303/- to the....

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....ee received the advance from the company in which she was a major shareholder. The company had the accumulated profit of more than the advances received by the assessee. He, therefore, submitted that the order of learned CIT(A) should be sustained. 6. We have carefully considered the submissions of both the sides and perused the material placed before us. Section 2(22)(e) of the Act reads as under:- "2. In this Act, unless the context otherwise requires,-- (22) "dividend" includes-- (e) any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) [made after the 31st day of May, 1987, by way of advance or loan....

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....o the assessment year under consideration, on various dates, the assessee received the amount from the company which in total amounted to Rs. 65,62,500/-. The assessee has also given the copy of account of the subsequent year, i.e., for the period 1.4.2006 to 31.3.2007, a perusal of which will indicate that the assessee received further amount from the company up to 29.08.2006 and thereafter, on 23.03.2007, repaid the entire amount of Rs. 85 lakhs. It is stated by the learned counsel that more money than the credit balance of the assessee was received by the assessee for personal purposes which is repaid. In our opinion, the nature of the transaction is clearly in the nature of loan/advance received by the assessee from the company which is....