TMI Blog2010 (9) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... es Transport, Nagpur and is engaged in a business of transportation of explosives. The assessee holds 19.94% shares in M/s Solar Explosives Limited (For short, SEL) a Company in which the public are not substantially interested. For the assessment year 2004-05, the Assessing Officer held that the amount of ₹ 73,39,572/- (Rs.47,99,572 + 40,000/-) constituted deemed dividend under Section 2 (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal is filed by the Revenue. The first contention raised on behalf of the Revenue is that the Tribunal committed an error in holding that the receipt of ₹ 25,00,000/- as advance towards sale of land falls outside the purview of Section 2 (22) (e) of the Income Tax Act. According to the Revenue, there is no provision in the Income Tax Act for excluding such advances from the purview of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 2 (22) (e) of the Income Tax Act provides that any advance or loan given by a Company in which public are not substantially interested, to its shareholders, constitutes deemed dividend. Where the amount is advanced by a Company towards part consideration of a property intended to be sold by the assessee to the Company, it cannot be said that the Company has advanced money to its shareholders w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- represented advance towards transportation charges payable by the company to the assessee. It is not in dispute that the assessee is also transporting goods belonging to the SEL. In paragraph No.12 of the judgment, the Tribunal has recorded a finding of fact that during the period from 1.4.2003 to 15.12.2003 the assessee had transported the goods belonging to the Company without receiving an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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