2018 (5) TMI 1757

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.... O R D E R Per Smt. P. Madhavi Devi, J.M. This is assessee's appeal for the A.Y 2009-10 against the order of the CIT (A)-3, Hyderabad, dated 6.9.2016. The assessee has raised the following grounds of appeal: "1. The order of the Hon'ble CIT(A) is erroneous in law as well as facts of the case. 2. The Hon'ble CIT(A) ought to have observed that the amounts advanced to....

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.... on 30.09.2009 admitting a total income of Rs. 2,72,500 and the same was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny and it was observed from the ledger account copy of the assessee in the books of account of the company, that the company has debited the account of the assessee, with a total sum of Rs. 8,09,750 on various dates. Observing that the assessee is ....

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....scriber to the chits of the company and has received the chit amount on being the successful bidder in the auction and therefore, it cannot be treated as deemed dividend u/s 2(22)(e) of the Act. As regards, the loan amount of Rs. 5,29,750 also it was submitted that it is a loan taken by the company from LIC and not out of the accumulated profits and therefore, the same cannot also be treated as de....

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....ear that the assessee has received the bid amount as a customer of the company and not as a Director or the shareholder of the company. The business transaction of the company do not fall within the provisions of deemed dividend u/s 2(22)(e) of the Act. Therefore, the addition of Rs. 2,88,000 is deleted. 6. As regards the sum of Rs. 5,29,750, it is seen that the company has received a loan from....