2015 (9) TMI 1243

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....th Ms. Niyati Chanana, Advs ORDER 1. This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act') is directed against the order dated 21st October 2014 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 4940/Del/2012 for the Assessment Year ('AY') 2009-10. 2. The Assessee is a shareholder of Dhir International Private Limited ('DIPL&....

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....ere in respect of cheque discounting by the Assessee through DIPL. It was explained that DIPL had a facility of discounting the cheque with the bank and, therefore, the Assessee issued cheque in the name of the DIPL and they paid a similar account to the Assessee and got the cheque discounted through the bank. The explanation offered by the Assessee that for each and every transaction a contra ent....

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....ted by the aforementioned outstanding debit balance. 6. The Court is unable to accept the above submission. The AO has simply proceeded on the assumption that since there is an opening debit balance in the account, it should be treated as an outstanding loan and that every payment thereafter made by the Assessee to DIPL should be taken to be in the nature of repayment of the loan. The stand of th....