TMI Blog2014 (2) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... e has received further amount, it was certainly in the nature of loan/advance which is to be repaid by the assessee and actually repaid by the assessee in the subsequent year – the arrangement between the assessee and the company was merely for the sake of convenience arising out of business expediency - no such business expediency has been established by the assessee in the case under appeal – decided against Assessee. - ITA No. 5169/Del/2010 - - - Dated:- 7-2-2014 - Shri G. D. Agrawal And Shri A. D. Jain,JJ. For the Appellant : Shri Divyanshu Agarwal, CA. For the Respondent : Shri S.N. Bhatia, Sr. DR. ORDER Per G. D. Agrawal,VP. This appeal by the assessee is directed against the order of learned CIT(A)-VI, New Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount with the company M/s CCS Computer Private Limited and in all the preceding years, there was a credit balance of the assessee with the company. It is only during the year under consideration that the assessee received back the credit balance and also some more money was received from the company for the personal purpose of the assessee which was returned in the subsequent year. He, therefore, submitted that the amount received in excess of the credit balance by the assessee was not in the nature of loan or advance by M/s CCS Computer Private Limited to the assessee. Therefore, the assessee's case does not fall within the ambit of Section 2(22)(e). The learned counsel also relied upon the decision of ITAT, Chennai Bench in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... older, to the extent to which the company in either case possesses accumulated profits ;." 7. Let us examine the facts of the assessee's case in the light of the above definition of deemed dividend under Section 2(22)(e). Admittedly, the payment is made by the company in which public is not substantially interested. The assessee is admittedly the beneficial owner of the shares holding more than 10% of the voting power. The company has accumulated profit of more than the amount received by the assessee from the company. Now, the only dispute is whether the amount received by the assessee from the company is in the nature of loan or advance. The copy of account of the assessee in the books of M/s CCS Computer Private Limited for the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, we are unable to accept the assessee's contention that the amount received by the assessee from the company over and above assessee's credit balance was not in the nature of loan/advance. The learned counsel for the assessee has also relied upon the decision of ITAT, Chennai Bench in the case of Smt. G. Sreevidya (supra). However, we find that the facts in the above case were different. In the said case, the assessee had given the bank guarantee and collateral security for the funding of the company and it was pre-condition of granting the bank guarantee and collateral security for the funding of the company that she should be given the advance. On these facts, the ITAT held that the arrangement between the assessee and the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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