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2013 (12) TMI 1156 - ALLAHABAD HIGH COURTWhether amount received for commercial transaction be held as loan or dividend u/s 2(22)(e) - Held that:- The Tribunal being final Court of fact accepted the explanation that the amount was received as advance sale consideration for sale of cold storage of the assessee - The agreement could not materialise on which the MOU was executed cancelling the transaction - The payment of the amount in pursuance to the agreement for sale of cold storage would not by itself become loan or partake the character of loan after the agreement was cancelled and MOU signed for returning the amount – The MOU was produced by the assessee before CIT(A) - Decided against Revenue. Interest free loan given to family members - Held that:- The Tribunal recorded the findings that the assessee in his individual account was having sufficient capital - If he had given the amount as interest free loan to his family members, that by itself could not be put to doubt and on which the interest was disallowed under Section 36 (1) (iii) of the Act – Decided against Revenue.
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