TaxTMI 
TaxTMI 
2016 (12) TMI 1846
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....ssee is deriving income from salaries and capital gains and the return for the year under consideration was filed on 29.07.2008 at total income of Rs. 1,98,760/-. The return was selected for scrutiny under CASS and accordingly statutory notices were issued and served upon the assessee. 4. During the course of the assessment proceedings of one M/s. Kadam Exports (P) Ltd, it was noticed that the assessee was the major share holder/director of the company and also had entered into financial transaction with Kadam Exports (P) Ltd. On perusal of the copy of account in respect of the assessee in the books of accounts of Kadam Exports (P) Ltd., it was noticed that the said company had advanced funds to the assessee which was not during th....
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.... making an addition of Rs. 56,58,034/- which included the sum of Rs. 45,00,000/- as deemed dividend. 7. Assessee carried the matter before the ld. CIT(A) and challenged the additions so made. 8. After considering the facts and the submissions, the ld. CIT(A) held as under:- 6. I have considered the facts of the case, assessment order and written submission submitted by the authorized representative of the Appellant. It was the case of the assessing officer that Kadam Exports Pvt. Ltd. has provided loan amounting to Rs. 45,00,000/- to the Appellant and therefore, he added an amount of Rs. 45,00,000/- u/s 2(22)(e) of the Act, whereas during the course of appellate proceedings, it was the argument of A.R. of the Appellant that t....
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....sactions of loans and advances, in this kind of mutual, open and current accommodation adjustment account, the movement of funds is both ways and the same is more in the nature of current account rather than a loan account. Transactions in the nature of loans and advances are usually very few and for a longer duration carrying interest. In the facts of the present case, the nature of transaction is in the form of mutual, open and current accommodation adjustment account and therefore, the same is not a transaction in the nature of loans and advances. I have also perused the orders of CIT(A) in the case of Schutz and Dishman (supra) placed before me and in the both the cases, under identical facts of the case, both the CIT(A)s have also held....
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....-Tech Pvt. Ltd. in Tax Appeal No. 958 & 959 of 2015 and also relied upon the decision of the Co-ordinate Bench in the case of Dishaman Pharmaceuticals & Chemicals Ltd. in ITA No. 2105 & 2125/Ahd/2012. 11.We have given a thoughtful consideration to the orders of the authorities below. We have also carefully gone through the decisions relied upon by the rival parties. There is no dispute that the assessee is holding substantial interest in Kadam Exports (P) Ltd., the relevant extract of the copy of the ledger account of the assessee in the books of accounts of M/s. Kadam Exports (P). Ltd. is as under:- Date Particulars Vch Type Vch No. Debit Credit 30.05.2007 By HDFC Bank Ch. NO. 300195 BOI Rec. M.D. Zaveri Recei....
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....p; 1,44,50,000.00 1,44,50,000.00 12. A perusal of the afore-stated copy of the account clearly shows that the assessee was having a current account with the said company. It can be seen that there are several debits and credits entries in the said account. The Hon'ble Jurisdictional High Court in the case of Schutz Dishman BioTech Pvt. Ltd. (supra) was seized with the following question of law:- "Whether on facts and in law the ITAT was right in cancelling the order passed u/s 201(1) and 201(A) of the Act, without appreciating that the amount advanced was in the nature of deemed dividend u/s 2(22)(e) of the Act?" 13. And the relevant findings of the Hon'ble High Court reads as under:- 4. It ....