9911796707
TMI Blog2015 (12) TMI 1529X X X X Extracts X X X X X X X X Extracts X X X X ..... oncluding the appeal. 2. The Ld. CIT(A)-I, Hyderabad is not justified in sustaining the addition u/s 2 (22)(e) without considering the facts and circumstances of the case. 2. The brief facts of the case, is that the assessee is an individual who is a shareholder and Director of Nishi Egg Poultry Product Pvt. Ltd. The assessee did not filed the return of income before the due date specified u/s 139, hence, a notice u/s 142(1) of the Income-tax Act, 1961 (hereafter called as 'the Act') was issued on 27.11.2007, requesting assessee to file return of income on or before 17.12.2007. In response to this notice, the assessee filed a return of income on 20.3.2009 declaring total income of Rs. 6,55,900/-. The case was selected for scrutiny and ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of section 2(22)(e) of the Act and also relying upon the several judicial decisions, held that the debit balance appearing in the books of the company in the name of the assesse, must be regarded as deemed dividend within the meaning of section 2(22)(e) of the Act. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before CIT(A), the assessee submitted that the A.O. made the additions purely on guess and surmises without considering the fact that all debit balances cannot be considered as loan or deposit. The assesse further submitted that she had received the amount from the company towards sale of property, to this effect furnished a copy of the sale agreement entered into with the company. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete. Therefore, the sale agreement cannot be accepted as a document in support of her claim. The CIT(A), further held that the assessee is trying to cover up the said advance by creating a fictitious sale agreement which cannot be accepted. Therefore, confirmed the additions made by the A.O. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 4. The Authroised representative of the assesse, submitted that the debit balance appearing in the Company books in the name of the assesse is the advance paid for purchase of property. The A.R. further submitted that the assesse entered into sale agreement with the company and received money towards advance. The A.R. further submitted that she did not derive any individual benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. The assessee's contention is that she has received the amount from the company towards sale of property and furnished a copy of sale agreement entered into with the company for sale of property. On perusal of ledger account, we noticed that during the financial year 2006-07, the assessee has drawn an amount of Rs. 43,93,705/- from the company for various purposes. On perusal of the ledger account, we noticed that there are credits in the account in the form of bank receipts, remuneration and rent. The net effect of these transactions appears debit in the name of the assessee for an amount of Rs. 35,68,404/-. We also examined the copy of sale agreement filed by the assessee and noticed that the said sale agreement is unregistered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the property and the assessee has entered into a sale agreement. Therefore, in our opinion, the assessee is trying to circumvent the alleged loan and advances by furnishing an unregistered sale agreement, which was later not acted upon by both the parties even now. Hence, we hold that the A.O. is right in treating the loan received by the assesse as deemed dividend under the provisions of section 2(22)(e) of the Act. The CIT(A) has considered the issue elaborately and upheld the additions made by the A.O. Therefore, we upheld the order of the CIT(A) and dismiss the appeal filed by the assessee.
5. In the result, the appeal filed by the assessee is dismissed.
The above order was pronounced in the open court on 11TH Dec'15. X X X X Extracts X X X X X X X X Extracts X X X X
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