2010 (10) TMI 1110

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....SHARMA, AM : This is an appeal filed by the assessee against the order of CIT(A) dated 29.1.2010 for the AY 2004-05, in the matter of order passed u/s 147/143(3) of the IT Act. 2. In this case, assessee is aggrieved for addition of Rs. 27,90,906/- made by the AO u/s 2(22)(e) of the IT Act. 3. Rival contentions have been heard and record perused. Facts in brief are that the assessee, the p....

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....f the Act. 4. By the impugned order, CIT(A) confirmed the addition against which the assessee is in further appeal before us. 5. We have gone through the orders of the authorities below and found that assessee was having substantial interest in M/s Shashi International, therefore the amount of loan received was liable to be treated as deemed dividend within the meaning of Section 2(22)(e) of....

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....tion for taxing the same as deemed dividend within the meaning of Section 2(22)(e). Deeming provision should not be enlarged beyond the logical end. For example, if an assessee is regularly taking cheques of Rs. 2 lakhs at interval of 4-5 days and in the entire year he has taken 50 cheques of Rs. 2 lakhs which amount to Rs. 1 crore. But however, if the assessee has also repaid the amount before ge....

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.... Section 2(22)(e) as deemed dividend. In the instant case, as per the statement of account placed on record, we found that assessee was in receipt of various cheques, some of cheques were received on account of expenditure which the assessee was to incur in the normal course of business for undertaking foreign travel for the purpose of business of the company. Thus, these amounts were attributable....