2015 (7) TMI 479

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....al ORDER 1. This appeal of the revenue challenges the order passed by the Income Tax Appellate Tribunal, Mumbai dated 23rd November, 2012. The assessment year is 2006-07. 2. The assessee's appeal has been allowed by the Tribunal and that is why the revenue being aggrieved is before us. 3. Mr. Suresh Kumar submits that the questions of law framed at pages 3 and 4 are substantial que....

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....ms were advanced to the employees of M/s. JMC Securities Pvt. Ltd., therefore, the exclusionary clause was not applicable and reliance placed on the judgment of this Court in the case of CIT v. Parle Plastics Ltd. [2011] 332 ITR 63 was entirely misplaced. 4. We have perused the appeal paper-book with the assistance of Mr. Suresh Kumar, learned counsel appearing for the revenue and Mr. Pardiwall....

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.... had accumulated profits of Rs. 3,38,85,459/- as on 31st March, 2006, the assessing officer called upon the assessee who is respondent before us to explain as to why the loan amount to the above extent should not be brought to tax in his hands as deemed dividend under section 2(22)(e) of the Income Tax Act, 1961. 6. In reply, the assessee contended that the main object of M/s. JMC Securities Pv....

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....,45,000/-. That constituted 32% of the total funds available with the said company. In these circumstances, the Tribunal concluded that that the lending of money is a substantial part of the business of M/s. JMC Securities Pvt. Ltd. The addition made by the assessing officer and sustained by the Commissioner was not valid and legal, particularly in the background facts. In the light of the undispu....