Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 1197 - AT - Income TaxDeemed dividend u/s 2(22)(e) - Held that:- The allegation of the department that the payments by the company to the assessee is a gratuitous one also cannot be accepted not only because of the fact that it is towards advance for purchase of land but also considering the fact that the assessee has put all her personal properties as collateral security for the loan availed by the company. Therefore, the company has certainly derived advantage on account of the assessee. That being the case, it cannot be said that the amount paid, even assuming that it is not towards sale consideration of the property, is a loan or advance and not for the business purpose of the company. The payment cannot be treated as deemed dividend u/s 2(22)(e) of the Act. Accordingly, we direct the assessing officer to delete the addition made of the said amount. So far as the other additions are concerned, it is the contention of the Ld. A.R. that if at all they are to be treated as deemed dividend, then opening balance as appearing at the beginning of the year has to be excluded and proportionate addition has to be made on the balance amount. However, considering the fact that this argument was not made before the departmental authorities, we consider it appropriate to remit the matter back to the file of the assessing officer for considering the same afresh after verifying the facts and materials on record. - Decided partly in favour of assessee
|