2020 (8) TMI 440

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....ereinafter referred to as 'the Act'). 3. Briefly stated, the facts of the case are that the Assessing Officer (AO) obtained information about the assessee having received a sum of Rs. 10,00,000 from a company in which he was a director, which, in his opinion, was violation of the provisions of section 2(22)(e) of the Act. He issued notice u/s 148 of the Act requiring the assessee to file return within 30 days. No return was filed in response to the notice. During the course of assessment proceedings, the AO observed, on the basis of proceedings before the Asst. Director of Income-tax (Investigation), Aurangabad, where the statement of assessee was recorded on oath on 11.01.2011, that the assessee borrowed a sum of Rs. 10,00,000 from Sank....

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....on), Aurangabad for verification of cash deposits in his bank account. During the course of his statement on oath before the ADIT (Inv.), the assessee admitted to have borrowed a sum of Rs. 10,00,000 as loan from Sankalp Seeds Private Limited, which was subsequently repaid. The AO found accumulated profits of the company to be much in excess of Rs. 10,00,000, being the amount of loan given by the company to the assessee. The provisions of section 2(22)(e) of the Act, in such circumstances, are obviously attracted. The assessee had tried to make out a case before the authorities that the said amount of Rs. 10,00,000 was received as advance or an imprest. The ld. CIT(A) has elaborately dealt with such contentions by giving dates on which smal....