2017 (4) TMI 958

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....with rule 8D amounting to Rs. 8,17,003/- on account of interest paid on borrowed fund invested in exempt assets. 2. On the facts and in the circumstances of the case the Ld. C.I.T.(A) has erred in confirming the deemed dividend income u/s. 2(22)(e) of the 1. T. Act, 1961 amounting to Rs. 21,13,676/-. 3. On the facts and in the circumstances of the case the Ld. C.I.T.(A) has erred in confirming the disallowance of Rs. 6,42,436/- on account of interest on loans not for the purpose of business. 4. On the facts and in the circumstances of the case the Ld. C.I.T.(A) has erred in confirming the estimated income of House Property at Rs. 63,000/- by the Ld. A.O. 5. Other grounds of Appeal may be argued before or at the time of hearing o....

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....s property and that this was not possible without the company releasing equitable mortgage and under such circumstances the assessee was in that case allowed to take loan from the company. In the case in hand the ld. DR submitted that such situation has not arisen. 4. After hearing the rival submissions I find that the Jurisdictional High Court in the case of Pradip Kumar Malhotra held as follows :- "The phrase 'by way of advance or loan' appearing to sub-clause (c) of section 2(22) must be construed to mean those advances or loans which a shareholder enjoys for simply on account of being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate....