2016 (10) TMI 1331

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....,46,927/- as deemed dividend u/s 2(22)(e) of the Income-tax Act, 1961. 3. At the time of hearing before us, it is stated by the learned counsel that the assessee is a shareholder in Orient Carpet Gallery Pvt.Ltd. (hereinafter referred to as 'OCG'). That at the beginning of the year, there was credit balance of the assessee in the company amounting to Rs. 3,28,78,073/-. Thus, the assessee was to receive the money from the company. Almost for whole year, the assessee was to receive money from the company. However, on receipt of two cheques of Rs. 5 lakhs and Rs. 25 lakhs each on 01.02.2006 and 11.02.2006, there was credit balance of the company with the assessee and the assessee has already paid Rs. 25,31,866/-. Thus, the credit balance of....

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....credit balance of Rs. 1,46,927/- of OCG with the assessee. Thereafter, the company paid the sum of Rs. 5 lakhs on 1st February, 2006 and Rs. 22 lakhs on 11th February, 2006 resulting in total credit balance of Rs. 28,46,927/-. Thus, credit balance of the company with the assessee was in the nature of loan and advance and Section 2(22)(e) was rightly applied by the Assessing Officer and rightly sustained by learned CIT(A). The assessee has not produced any documentary evidence that the amount was given to the assessee in his capacity as director of the company for acquiring the immovable property of the company. Therefore, this contention is rightly rejected by the CIT(A). He also stated that the assessee is a substantial shareholder of OCG ....

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....p;OCG Pvt Ltd   50000.00 31203073.00 DR 02/Jun/2005 BR/0001 Chq recd from  OCG Pvt Ltd   2000000.00 29203073.00 DR 04/Jun/2005 BR/0001 Chq recd from  OCG Pvt Ltd   2000000.00 27203073.00 DR 06/Jun/2005 BR/0001 Chq recd from  OCG Pvt Ltd   1000000.00 26203073.00 DR 07/Jun/2005 BR/0001 Chq recd from  OCG Pvt Ltd   2000000.00 24203073.00 DR 09/Jun/2005 BR/0001 Chq recd from  OCG Pvt Ltd   1000000.00 23203073.00 DR 11/Jun/2005 BR/0001 Chq recd from  OCG Pvt Ltd   400000.00 22803073.00 DR 13/Jun/2005 BR/0001 Chq recd from  OCG Pvt L....

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....073.00 DR 17/Dec/2005 BR/0001 Chq recd from  OCG Pvt Ltd   3500000.00 7153073.00 DR 22/Dec/2005 BR/0001 Chq recd from  OCG Pvt Ltd   5000000.00 2153073.00 DR 03/Jan/2006 BR/0001 Chq recd from  OCG Pvt Ltd   1000000.00 1153073.00 DR 10/Jan/2006 BR/0001 Chq recd from  OCG Pvt Ltd   500000.00 653073.00 DR 19/Jan/2006 BR/0001 Chq recd from  OCG Pvt Ltd   800000.00 -146927.00 CR 01/Feb/2006 BR/0001 Chq recd from  OCG Pvt Ltd   500000.00 -646927.00 CR 11/Feb/2006 BR/0001 Chq recd from  OCG Pvt Ltd   2200000.00 -2846927.00 CR 27....