TMI Blog2021 (5) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... come within the purview of section 2(22)(e) but not the loans or advances which are given in return to an advantage conferred upon the company by such shareholder . In the present case, the amount of loan in question was given to the assessee by the concerned company on interest and since the said loan was not a gratuitous one and was given in return to an advantage conferred upon the company by the assessee in the form of interest, find merit in the contention of the ld. Counsel for the assessee that the same cannot be treated as deemed dividend within the meaning of section 2(22)(e). Income from house property - deduction on account of interest on Housing Loan - HELD THAT:- Assessee has not raised any objection for getting this m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect the Assessing Officer to restrict the disallowance made on account of depreciation of Chevrolet Beat car to the extent of 1/3rd. Similarly the disallowance made by the Assessing Officer on account of car maintenance for personal use to the extent of 50% is directed to be restricted to one-third. Ground No. 3 of the assessee s appeal is accordingly partly allowed. - I.T.A. No. 340/KOL/2020 (Assessment Year: 2013-2014) - - - Dated:- 23-4-2021 - Shri P.M. Jagtap, Vice-President Shri Pramod Himmats inghka, A.R., appeared on behalf of the assessee Shri Jayanta Khanra, JCIT, Sr. D.R., appeared on behalf of the Revenue ORDER This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case, Ld. CIT(A) erred in not considering the depreciation disallowance ₹ 76,401/- on motor car, disallowance of motor car maintenance ₹ 38,800/- made by AO . 4. As regards the issue raised in Ground No. 1 relating to the addition of ₹ 5,10,590/- made on account of deemed dividend under section 2(22)(e) of the Act, the relevant facts of the case are that the assessee is an individual, who is engaged in the business of trading and retailing of ply and allied products. The return of income for the year under consideration was filed by him on 09.10.2013 declaring total income of ₹ 15,42,711/-. Although the said return was initially processed by the Assessing Officer under section 143(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Akshat Plywoods Pvt. Limited. Since these transactions in the nature of loan were not business transactions, the ld. CIT(Appeals) treated the amount of ₹ 5,10,590/- as deemed dividend and addition made by the Assessing Officer to that extent under section 2(22)(e) was sustained by him. 6. I have heard the arguments of both the sides and also perused the relevant material available on record. The ld. Counsel for the assessee has invited my attention to the extract of ledger account of the assessee in the books of M/s. Akshat Plywoods Pvt. Ltd. placed at page no. 5 of the paper book to show that interest of ₹ 42,590/- was paid by the assessee to M/s. Akshat Plywoods Pvt. Limited on the outstanding loan amount during the ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d delete the addition made by the Assessing Officer and sustained by the ld. CIT(Appeals) on account of deemed dividend under section 2(22)(e) of the Act. Ground No. 1 of the assessee s appeal is accordingly allowed. 7. As regards the issue involved in Ground No. 2, the limited contention raised by the ld. Counsel for the assessee is that deduction on account of interest on Housing Loan was claimed by the assessee only to the extent of ₹ 1,50,000/- under section 24(b) of the Act and not ₹ 5,18,115/- as wrongly taken by the ld. CIT(Appeals). He has contended that the disallowance of ₹ 3,68,115/- made by the ld. CIT(Appeals) on account of interest on Housing Loan thus is not sustainable. The ld. D.R. has contended that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l use of Chevrolet Beat car by the assessee cannot be ruled out, the claim of the assessee for depreciation on the said car cannot be entirely disallowed and it will be fair and reasonable to restrict the same to one-third for such personal use as the claim of the assessee of having used the said car for business purpose also cannot be outrightly rejected. I, therefore, direct the Assessing Officer to restrict the disallowance made on account of depreciation of Chevrolet Beat car to the extent of 1/3rd. Similarly the disallowance made by the Assessing Officer on account of car maintenance for personal use to the extent of 50% is directed to be restricted to one-third. Ground No. 3 of the assessee s appeal is accordingly partly allowed. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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