2015 (12) TMI 1529

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.... facts and circumstances of the case while concluding the appeal. 2. The Ld. CIT(A)-I, Hyderabad is not justified in sustaining the addition u/s 2 (22)(e) without considering the facts and circumstances of the case. 2. The brief facts of the case, is that the assessee is an individual who is a shareholder and Director of Nishi Egg Poultry Product Pvt. Ltd. The assessee did not filed the return of income before the due date specified u/s 139, hence, a notice u/s 142(1) of the Income-tax Act, 1961 (hereafter called as 'the Act') was issued on 27.11.2007, requesting assessee to file return of income on or before 17.12.2007. In response to this notice, the assessee filed a return of income on 20.3.2009 declaring total income of Rs. 6,5....

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.... offered by the assesse, after analyzing the provisions of section 2(22)(e) of the Act and also relying upon the several judicial decisions, held that the debit balance appearing in the books of the company in the name of the assesse, must be regarded as deemed dividend within the meaning of section 2(22)(e) of the Act. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before CIT(A), the assessee submitted that the A.O. made the additions purely on guess and surmises without considering the fact that all debit balances cannot be considered as loan or deposit. The assesse further submitted that she had received the amount from the company towards sale of property, to this effect furnished a copy of ....

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....ntered in 2005, even at this stage, the sale is not complete. Therefore, the sale agreement cannot be accepted as a document in support of her claim. The CIT(A), further held that the assessee is trying to cover up the said advance by creating a fictitious sale agreement which cannot be accepted. Therefore, confirmed the additions made by the A.O. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 4. The Authroised representative of the assesse, submitted that the debit balance appearing in the Company books in the name of the assesse is the advance paid for purchase of property. The A.R. further submitted that the assesse entered into sale agreement with the company and received money towards advance. The A.R. furthe....

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....unts, therefore, invoked the provisions of section 2(22)(e) of the Act. The assessee's contention is that she has received the amount from the company towards sale of property and furnished a copy of sale agreement entered into with the company for sale of property. On perusal of ledger account, we noticed that during the financial year 2006-07, the assessee has drawn an amount of Rs. 43,93,705/- from the company for various purposes. On perusal of the ledger account, we noticed that there are credits in the account in the form of bank receipts, remuneration and rent. The net effect of these transactions appears debit in the name of the assessee for an amount of Rs. 35,68,404/-. We also examined the copy of sale agreement filed by the asses....