TaxTMI 
TaxTMI 
TaxTMI 
2016 (10) TMI 1331
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....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 the company amounting to Rs. 28,46,927/- remai....
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....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 and OCG has accumulated profit. Therefore, all th....
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.... 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 Ltd 1200000.00 21603073.00 DR 15/Jun/2005 BR/0001 Chq recd from OCG Pvt Ltd 150000.00 21453073.00 DR 15/Jun/2005 BR/0002 Chq recd from OCG Pvt Ltd 400000.00 21053073.00 DR 11/Aug/2005 BP/0001 Chq issd to OCG Pvt Ltd ....
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....R/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/Feb/2006 BP/0002 Chq issd to OCG Pvt Ltd 2531866.70 -315060.30 CR 31/Mar/2006 Closing Balance -3150060.30 CR Account Totals 38809939.70 39125000.00 6. From the above, it is evident that there is running account of the company in the books of the assessee. There is regular receipt and payment of money between the assessee and the company. In the beginning of the year i.e., on 1st April, 2005, there was debit balance of Rs. 3.28 crores of the company in the books of the assessee. Thus, as on 1st April, ....