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2015 (6) TMI 450 - AT - Income TaxDeemed dividend u/s 2(22)(e) - whether on the basis of deployment of funds, can it be held that money lending was substantial part of business of Silgo? - CIT(A) deleted the addition - Held that:- In the present case, it has already been mentioned that more than 75% of the funds available have been deployed by Silgo, therefore, money lending constituted substantial part of the business of Silgo and the fact that no interest income was shown by Silgo in Profit & loss account cannot be said to be relevant to decide the question that “whether or not money lending was substantial part of business of Silgo?”. Learned CIT(A) has rightly appreciated the provisions of law, which has been explained by Hon’ble Jurisdictional High Court in the case of Parle Plastics Ltd. (2010 (9) TMI 726 - BOMBAY HIGH COURT ) wherein held that if the lending of money constitutes substantial part of business of the company, then the loan given by the company to its share holders cannot be considered to be deemed dividend under the provisions of section 2(22)(e) as the same fall under the exception mentioned in section 2(22)(e)(ii). - Decided in favour of assessee
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