TMI Blog2002 (9) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the company had agreed to pay an advance of Rs. 10 lakhs when it had taken the first floor on lease for the purpose of meeting the cost of construction of the other three floors and that the lease deed provided explicitly that the advance so paid was to be adjusted against the rent payable for the other three floors. The amount of rent payable for those floors was also set out in the furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as a deemed dividend for the purpose of section 2(22)(e)?" The assessee is an individual and he is the managing director of Tip Top Plastic Industries Pvt. Ltd. The assessee has substantial interest in that company. The assessee as an individual owns a property at No. 31, Stringers St., Madras. The company of which he is the managing director was using that premises as a godown prior to 1981 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, by which the second, third and fourth floors of the building were rented out to the company on a monthly rental of Rs. 10,400. While making the assessment for the assessment year 1983-84, the Assessing Officer held that the assessee had obtained a loan of Rs. 6,88,584 from the company, and that, that amount should be treated as dividend within the meaning of section 2(22)(e) of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee was to be set off against the future rents would therefore not alter the fact that the assessee in the eye of law had received dividend from the company during the relevant accounting period. Learned counsel for the assessee submitted that the term "advance" implies payment of a sum which was not due at the time it was paid and that in this case payment of the sum of Rs. 10 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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