2019 (2) TMI 1443

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.... 2. The following substantial questions of law which were admitted in the present appeal are quoted below for ready reference: "1.Whether in the facts and circumstances of the case, the Tribunal was right in holding that the provisions of sec.2(22)(e) treating a loan or advance as a deemed dividend does not apply if the loan is given as part of a contractual obligation? 2. Whether on the facts and circumstances of the case, the Tribunal was right in interpreting the section on the basis of intention of the legislature, when the words of the section are clear and unambiguous? 3. Whether on the facts and circumstances of the cae, the Tribunal was right in looking at the transaction between the two companies in othe....

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....ent by closely held company, (ii) of the nature of an advance or loan, (iii) to a share holder or beneficial owners of shares, (iv) with more than 10% voting power, (v) for his individual benefit. 8. In the present case, the credit arises by virtue of a contractual obligation and a business transaction and has been settled the very next year. There is no individual benefit derived by the Assessee. Moreover, the credit does not satisfy the definition of #advance# or #loan#. The fiction thus fails on several counts. The Revenue relies upon the judgment of the Supreme Court in the case of Miss P.Sarada vs. Commissioner of Income Tax (229 ITR 444) and the decision of the Calcutta High Court in M.D.Jindal vs. Commissioner of Income Tax ....