Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 1028 - AT - Income TaxDeemed dividend u/s 2(22)(e) - Held that:- As in the case of CIT vs. Parle Plastics Limited (2010 (9) TMI 726 - BOMBAY HIGH COURT) wherein it has been held that only that amount of loans and advances, which is actually received by assessee share holder from company during relevant assessment year, would fall within inclusive sub-clause(e) of definition of ‘dividend’ appearing in section 2(22)(e); opening words ‘any payment’ occurring in sub-clause (e) of section 2(22) contemplates actual payment made by company to assessee for being reacted as a dividend in computing income of assessee. The opening balance or loan taken in earlier year is not loan received by the assessee during the relevant previous year and could, therefore, be not treated as amount of loan or advance received by the assessee during the relevant previous year. Such amount, therefore, could not be included as deemed dividend under clause (e) of section 2(22) of the Act. In the case under consideration, since the loan amount is not issued during the year, therefore, we find that the CIT(A) has rightly deleted the addition. Addition on account of house hold expenses - Held that:- AO purely made estimated addition without bringing any material against the assessee for estimating household expenses. The contention of the ld. Counsel for the assessee that in other cases similar additions have been deleted, has not been rebutted through any material on record. In the absence of any material on record in favour of the revenue, we do not find any justification in making addition.
|