9911796707
Advanced Search 
TMI Blog2016 (10) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... ard Sri Shubham Agrawal, learned Counsel for the department and Sri Suyash Agrawal, learned Counsel for the assessee. This is an income tax appeal under Section 260A of the Income Tax Act, 1961 filed by the department against an order of the Tribunal dated 23.03.2006 for the assessment year 1995-96. The questions of law referred to are hereunder:- "(1) Whether the provisions of Section 2 (22) ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income Tax Act, 1961 regarding deemed dividend be not applied. The assessee on the other hand took a plea that the amount as stated above was not in the nature of a loan or advance and, therefore, it would not attract the provisions of Section 2 (22) (e) of the Act. The plea of the assessee was that the transaction was in ordinary course of business with DSM Capitals Ltd, which was substantiall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, there was no loan or advance. The department, thereafter, filed an appeal. The appeal has been decided against the department. The Tribunal records a finding of fact in paragraph no.23 of its judgement, which is quoted hereunder:- "Now, coming to the arguments of the ld. Counsel that this payment in any case, comes within the exception given in clause (ii) of section 2 (22) (e) on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the conclusion that where the substantial part of the business is of a financial nature, the exception clause (ii) of Section 2(22) (e) of the Act would apply. We are in agreement with the above decision and follow it. In view of the findings recorded by the Tribunal, the questions of law are answered in favour of the assessee and against the department. The appeal is dismissed as above. No c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
