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2014 (10) TMI 847
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....3,00,000/- (in account of proprietary concern of the assessee, M/s Roots) On 01.04.2008 Rs. 11,024/- (in the account of proprietary concern of 2 ITA-4940/Del/2012 the assessee, M/s Roots) On 23.04.2008 Rs. 1,00,000/- (Loan account of the assessee) On 19.11.2008 Rs. 6,50,000/- (Loan account of the assessee) On 16.02.2009 Rs. 14,50,000/- (Loan account of the assessee) On 16.02.2009 Rs. 10,50,000/- (Loan account of the assessee) On 04.03.2009 Rs. 9,75,000/- (Loan account of the assessee) --------------------- Total Rs. 45,36,024/- --------------------- He, therefore, treated the sum of Rs. 45,36,024/- as deemed dividend under Section 2(22)(e) in the hands of the assessee. 4. At the time of hearing before us, the learned counsel for the assessee contended that none of the above amounts received by the assessee is in the nature of loan or advance which may be treated as deemed dividend under Section 2(22)(e). We will examine the assessee's contention in respect of each and every alleged loan/advance. 5. Rs. 3,00,000/- and Rs. 11,024/- are debited by DIPL to the account of the assessee under the name and style....
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.... year for the purpose of applicability of Section 2(22)(e) and if the same amount is adjusted against the transaction of the year under consideration, then, there would be possibly double taxation under Section 2(22)(e). To elaborate, if we see the accounts of the Roots in the books of DIPL, the opening debit balance is Rs. 35,56,505/- which ought to have been considered for the applicability of Section 2(22)(e) in the respective years in which advance was given. If we see the closing balance, it is only Rs. 35,67,529/-. Thus, the variation is only on account of debit of audit fee of Rs. 11,024/- which has been separately considered by us. Except this debit of audit fee, there is no variation between the opening balance and the closing balance. If the sum of Rs. 3 lakhs is considered as deemed dividend, then, despite the total debit balance of only Rs. 35,56,505/-, the amount which would be considered for Section 2(22)(e) would be Rs. 38,56,505/- (Rs.35,56,505 in earlier years and Rs. 3,00,000 in the year under consideration) which cannot be the intention of the legislature. We may also clarify that even if the Department has failed to tax the advance given by DIPL to the assessee ....
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....p; 430 2,00,000.00 Ch.No.736009 Being cheque recd from Harsh Dhir 3-8-2008 Dr State Bank of India-10886408472 Receipt 453 4,50,000.00 Ch.No.736811 being ch recd from Harsh Dhir 10-8-2008 Dr KBL-1099 Receipt 469 2,00,000.00 23-8-2008 Dr HSBC 5548 5199 9831 6217 &nb....
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.... Harsh Dhir 11-10-2008 Dr State Bank of India-10886408472 Receipt 719 8,00,000.00 Being Ch recd from Harsh Dhir 8-11-2008 Dr KBL-1099 Receipt 829 8,50,000.00 Being amt Trf from Harsh Dhir 18-11-2008 KBL-1099 Receipt 864 &nbs....
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....p; Dhir Amex Card No 03005 29-11-2008 Dr HSBC 4384-5937-0617-3483 Journal 5,228.00 Being payment made by Harsh Dhir on behalf of the company Through Ch No 736024 for Shilpi Dhir HSBC Card No 6041 5-1-2009 Dr KBL-1099 &n....
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....nbsp; 2,94,10,098.00 63,39,535.00 Dr Closing Balance 2,30,70,563.00 ----------------------------------------------- 2,94,10,098.00 2,94,10,098.00 9. The sum of Rs. 1 lakh was paid by DIPL to the assessee on 23rd April, 2008. During the previous year relevant to the assessment year under consideration, there was no payment made by the assessee to DIPL before this date. Therefore, the sum of Rs. 1 lakh paid by DIPL to the assessee on 23rd April, 2008 is in the nature of loan and advance chargeable as deemed dividend under Section 2(22)(e). The oth....