TMI Blog2014 (11) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... ding of money is a substantial part of the business of the company - According to the assessee, the exclusionary clause would be attracted because the lending of money constitutes a substantial part of the business of the company - it would not be possible to decide the issue of the applicability of the exclusionary clause merely on an a priori basis and it would be appropriate to restore the proceedings back to the Tribunal for a decision afresh – thus, the matter is remitted back to the Tribunal for fresh adjudication – Decided in favour of assessee. - Income Tax Appeal No. - 190 of 2014 - - - Dated:- 3-11-2014 - Hon'ble Dr. Dhananjaya Yeshwant Chandrachud,CJ And Hon'ble Pradeep Kumar Singh Baghel,JJ. For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her the term lending of money includes hire purchase, transactions, for the purpose of Section 2(22)(e) of the Act. (D) Whether in view of the decision of this Hon'ble High Court in Commercial Motors Finance Ltd., M/s SFL should be treated as an entity engaged in money lending business and hence loan/advance to the assessee, was made in the ordinary course of its business and his, hence outside the ambit of section 2(22)(e) of the Act. (E) Whether on a true and proper interpretation of section 2(22)(e), it is the Main Objects of the company, contained in the memorandum of association, that determine, what business of the company would constitute the Substantial Part of Business of the company. We are not impressed with the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made an addition to the extent of ₹ 21.20 lacs which formed the bone of contention. Section 2(22)(e) of the Act, insofar is material, defines the expression 'dividend' in an inclusive manner as follows:- 2(22) dividend includes- (a) . . . (e) any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) made after the 31st day of May, 1987, by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten per cent of the voting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the assets which are given on hire by it. The second aspect which was noted was that, in the course of the interest tax proceedings before the Commissioner of Income Tax (Appeals), the assessee had taken the stand that the amount received by SFL were hire charges and not interest income and would, therefore, not be liable for interest tax. Insofar as the second aspect is concerned, learned counsel appearing on behalf of the assessee has placed on the record an order of the Tribunal dated 9 June 2005 (for AYs 1996-97, 1997-98, 1999-2000 and 2000-01), whereby the matter has been restored back to the Assessing Officer. Insofar as the first aspect is concerned, the Tribunal has not considered the nature of the transactions of the com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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