TaxTMI 
TaxTMI 
2018 (9) TMI 2108
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....ear (AY) 2013-14. 2. The Assessee has raised the following ground of appeal:- "In view of the facts and circumstances of the case, the Ld. CIT(A) ought to have deleted the addition of Rs.10,80,994/- made by the Ld. AO U/s.2(22)(e) of the Income Tax Act and hence your Appellant prays that the action of the Ld. AO be quashed and he be directed to delete the addition made by him." 3. The relevant facts as culled out from the materials on record are as under:- 3.1. During the course of assessment proceedings, it is found that the assessee has received payment of Rs. 1,32,91,914/- from M/s. Leela Tub Pvt. Ltd. (LTPL) in which the assessee is one of the director. It can also be evident from the ledger account of the Leela Tube P....
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....see on 08.12.2015 and the opportunity was granted to the assessee to be heard and explain his position on the issue raised. The Addl. CIT, Range-2(l), Ahmedabad has issued the direction u/s. 144A of the Act on the issue of applicability of the Sec.2(22)(e) of the Act in the case for A.Y. 2013-14 on 30.12.2015. The directions of the Addl. CIT, Range-2(1), Ahmedabad are reproduced as under: "2. Vide your above letter you have sought direction u/s. 144A on the issue of addition u/s. 2(22)(e) of the Act. Perusal of records revealed that the assessee is a direction of 'Leela Tubes Pvt. Ltd.' During the year under consideration, the director has received loan from the company to the tune of Rs.1,32,91,914/- and perusal. Therefore....
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....3- 2013 as evidenced from it's audited balance sheet is as under: Particular Rupees Rupees Sales 16,73,83,367 Stock-Raw Material 1,20,72,309 Stock- Work-I-Progress 1,92,19,700 Stock-Finished Good 1,20,97,441 Total Stock 4,33,89,450 4,33,89,450 Bank Finance form BankerIDBI-CC Hypo. Of Stocks 24,66,948 Dues to suppliers under L/C. Yes Bank Ltd. 80,62,806 Dues to suppliers under personal guarantees 2,25,12,547 v. The company had a bad time and it could hardly came out of the losses in this time. As a result, neither the bankers of the company 1DB1 Bank Ltd. were giving the adequate credit facilities and....
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....U/s. 2 (22)(e) is never taken in the manner in which section is intended and the assessee therefore most humbly prays that the addition sought to be made to the extent of Reserves and Surplus be dropped and oblige. " 3.4. But the Revenue has not agreed with the contention of the assessee and held that the assessee has substantial share-holding in the company and has received payment to the tune of Rs.1,32,91,914/- during the period under consideration which fall within the ambit of section 2(22)(e) of the Act. Perusal of the balance-sheet of M/s.Leela Tubes Pvt.Ltd. in which the assessee is holding shares above 10% of total shares and the company is having accumulated profit of Rs.10,80,994/- as on 31.03.2013. Therefore, the amount of Rs....
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....stricting of the loans and for that the several conditions were laid down. As a result, neither the bankers of the Company IDBI Bank Ltd. were giving the credit facilities and because of the defaults, the bankers were not allowing the company to pay to the creditors. As a result, it was very it was very difficult to get the raw-material from the market. Under the circumstances, the assessee asked his uncles and cousins to agree to permit him to offer as security the ancestral residence being Flat No.203 at Shripalnagar and avail the funding. In such fashion, some funding was availed from YES Bank and assessee opened a personal account and transferred the surplus funds of the company into his account and as and when the amount was falling du....