2013 (9) TMI 1327

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....961 ('the Act' for short). The facts of this ground are that the assessee is the proprietor of M/s. Vinod & Company and is also a director of M/s. Vinod Shares Ltd., which company is a member of stock exchange, currency exchange and commodity exchange. Both these entities are dealing in the same line of business viz., deriving brokerage from clients in respect of their transactions. Both have current accounts with each other. The perusal of accounts of one entity in the books of the other and vice versa, it was noticed that the nature of their accounts are that of a current account in which sometimes there is a credit balance in the books of the company and sometimes debit balances. M/s. Vinod Share Ltd. has charged interest on product b....

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....cts in assessee's own case for A.Y. 2008- 09 Appellate Tribunal in ITA No. 176 and 177/Jodh/2011 order dated 23/03/2012 has held that provision of Section 2(22)(e) are not attracted. The ld. DR tried to distinguish the facts of two years but in vain because the Calcutta High Court decision [supra] directly supports our above finding. In the Calcutta High Court it has been held thus : "The phrase "by way of advance or loan" s. 2(22)(e) must be construed to mean those advances or loans which a shareholder enjoys simply on account of being a person who is the beneficial owner of shares. If such loan or advance is given to such share holder as a consequence of any further consideration received from the shareholder, then such advance o....

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....2 The assessee out of the above codes filed confirmation with their permanent address and their PAN with regard to following codes and as such looking to the confirmation of account no adverse view is taken in respect of such codes: S. No. Code 1 CZD 2 SML 3 A3 However in respect to other codes no confirmation has been filed the detail of which is as under with the figure of MTM Profit / (Loss): S. No. Code MTM Profit/ Loss 1 CBL (4,859,715.00) 2 CDC 451,960.00 3 VTL (137,665.00) 4 Al (8,324,640.00) 5 BM (596,275.00) 6 CMT (322,250.00) 7 D51 1,432,585.00 8 Z2 (15,800.00)   Total  (12,371,800.00) The perusal of....