AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 797
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....ed as the expenses were incurred for the purpose of earning consultancy income. 2. At the threshold, it is noticed that the appeal has been filed with a delay of 482 days. The order of the learned CIT(A) was passed on 07.11.2023, and the appeal ought to have been filed within 60 days, i.e., on or before 06.01.2024. The appeal has, however, been filed on 02.05.2025. 2.1 Learned counsel for the assessee has placed reliance upon the application for condonation of delay accompanied by an affidavit. In the affidavit, it is averred that the impugned order of the learned CIT(A) was supplied to the assessee by his earlier consultant, M/s CNK & Associates LLP, only on 24.02.2025 through e-mail. The assessee, being unacquainted with income-tax procedures, was unaware that the order was simultaneously available on the Income-tax Portal. It is further stated that no physical copy of the order was ever received. On obtaining the said copy, the assessee engaged a new consultant, M/s CBV & Associates LLP, who advised him to pursue the statutory remedy of appeal, whereupon the present appeal was filed without further delay. It is thus urged that the delay is neither deliberate nor contumacio....
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....ompleted u/s 143(3) of the Act on 30.12.2017, the Assessing Officer made two additions: (i) treating loan of Rs. 1,40,00,000/- received from M/s Taurrus Finsec Pvt. Ltd. as deemed dividend u/s 2(22)(e) of the Act; and (ii) disallowance of expenses of Rs.16,87,356/- against consultancy income of Rs.26,05,000/ -. On appeal, the learned CIT(A) upheld both the additions/disallowance. Aggrieved, the assessee is in appeal before the Tribunal by way of raising grounds as reproduced above. 5. Before us, the Ld. Counsel for the assessee filed a Paper Book containing pages 1 to 92. 6. The ground No. 1 of the appeal of the assessee relates to addition of Rs.1,40,000/- for deemed dividend u/s 2(22)(e) of the Act in the hands of the assessee. The brief facts qua the issue in dispute are that the assessee is a shareholder holding 36.07% shares in M/s Taurrus Finsec Pvt. Ltd. The assessee was also holding the position of the Director in said company during the year under consideration. The assessee purchased a new residential property having his share at Rs.3.8 crores. The assessee received loans from difference sources including loan from scheduled banks amounting to Rs. 1,75,00,000/- and ....
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....employee can again apply for the loan only after completion of a period of three months from the date of rejection of his earlier application. While recommending the loan, the Head of the Departments should ensure that sufficient safeguards have been provided for the recovery of the money from the employee and/ or his sureties. C. Types of Loans: There are two types of loans that the company may grant to its employees: 1. Interest free loan: (Short term loans/ advances) (Employees who have completed less than 05 years of service are also eligible) a. Such type of loans will be in the form of advance against salary ie one month salary to be recovered in that month salary itself. b. Short term loans upto an amount equal to six months' salary can be availed, provided the repayment is made in a period of 12 months. 2. Loan with interest: (Long term loans and advances). a. Such type of loans will basically be given for buying a house property in the name of the employee. b. Loan to be repaid within a period of maximum twenty years. c. The total loan amount cannot exceed ten times of the CTC (Co....
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....amount against gratuity or any other dues payable to the employee. G. Procedure for Applying: 1. An employee has to apply in the format as given in Annexure I below. 2. The applicant has to provide names of two employees who will act as sureties for him (The sureties should not have any loan outstanding in their name as on the date of application of the loan). 3. The application after getting approved from the HOD has to be given to the HR department which will present it to the Board for final approval. 4. The loan will be disbursed only after sanction from the Board and the procedural time taken will be minimum 15 working days. H. Other terms: 1. The loans already sanctioned till the effective date of this policy, will continue on the same terms and conditions as sanctioned at the time of their disbursement. However, the recovery standards of this policy would apply. 2. Foreclosure of the loans will not attract any charges." 7.1 The assessee has not filed any minutes of meeting of General body required under the provisions of the Company Law Act, 2013, which reads as under: (2) A company may advan....
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....e lending of money was a substantial part of business, or the transaction was in the ordinary course of business. Here, no material has been adduced to show that money lending constituted a substantial part of the business of Taurrus Finsec Pvt. Ltd. Rather, the scheme appears to have been crafted and implemented for the benefit of the assessee himself, who was the first and principal beneficiary. In the instant case also this is not a normal business transaction. The Ld. Counsel for the assessee submitted that the company had granted loan to one more employee other than the assessee and therefore this was a loan in the normal course of the business of the assessee for maintaining employee relationship. We do not subscribes to these arguments of the Ld. Counsel for the assessee. In our opinion, this scheme has been floated by the assessee. He was the Managing Director of the assessee company for facilitating loans to himself, this was not a policy which was in existence for earlier years and the assessee is the first beneficiary of such policy. The assessee has taken undue advantage of his position of managing director and sanctioned loan to himself. The assessee being shareholder ....