RAJU THAKURDAS JAISINGHANI, ULHASNAGAR V. DCIT CIR 2, MUMBAI

ITA 3152/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2245 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 26-05-2015
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Assessee Lawyers: SUDHIR V HUNNARGIRKAR
• Keywords: Salary income

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ./ ITA NO. 3 152 / MUM/20 1 5 ( / ASSESSMENT YEAR : 20 11 - 2012 ) MR. RAJU THAKUR DAS JAISINGHANI, 202, 2 ND FLOOR, RATAN DEEP APARTMENT, SAPNA, GARDEN ROAD, SECTION - 17, ULHASNAGAR - 3, DISTRICT THANE VS. DCIT, CIRCLE - 2, KALYAN(W) - 421301 ./ ./ PAN/GIR NO. : A GOPJ 7036 K ( / APPELLANT ) .. ( / RESPOND ENT ) /AS SESSEE BY : SHRI SUDHIR V. HUNNARGIRKAR /REVENUE BY : SHRI NEIL PHILIP / DATE OF HEARING : 14 /0 7 /2016 / DATE OF PRONOUNCEMENT 27 / 0 7 /201 6 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), MUMBAI, FOR THE ASSESSMENT YEAR 20 11 - 2012 . 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR ADDITION MADE U/S.2(22)(E) OF THE I.T.ACT. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRANSPORT HIRING SERVICES UNDER THE NAME AND STYLE M/S RAJU ROADLINES. THE ASSESSEE IS ALSO A PARTNER IN VARIOUS FIRMS, FROM WHERE HE HAD RECEIVED SHARE OF PROFIT, INTEREST ON CAPIT AL AND REMUNERATION. BESIDES ABOVE INCOME, HE HAD SALARY INCOME FROM M/S DHEERAJ ESTATES PVT. LTD. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTICED THAT THE ASSESSEE ITA NO. 3 152 /1 5 2 HAD WITHDRAWN AN AMOUNT OF RS.20,00,000/ - FROM THE ACCOUNT OF M/S DHEERAJ ESTAT ES PVT. LTD., WHERE HE OWNS 25% OF THE TOTAL SHARE HOLDINGS. IN THE COURSE OF ASSESSMENT U/S.143(3) THE AO MADE AN ADDITION OF RS.20,00,000/ - U/S.2(22)(E) OF THE ACT BY OBSERVING THAT ASSESSEE WAS IN RECEIPT OF AMOUNT FROM THE COMPANY IN WHICH HE WAS HAVI NG 25% OF TOTAL SHARE HOLDING. FROM THE RECORD WE FOUND THAT A SUM OF RS.11,60,000/ - WAS RECEIVED BY ASSESSEE AS A DIRECTOR OF THE COMPANY. THE AMOUNT RECEIVED ON ACCOUNT OF DIRECTORS REMUNERATION WHICH HAVE BEEN DULY OFFERED FOR TAX AS INCOME CANNOT BE H ELD IN THE NATURE OF LOAN SO AS TO ATTRACT PROVISIONS OF SECTION 2(22)(E) OF THE ACT. 4. I ALSO FOUND THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE DEPOSITED AN AMOUNT OF RS.75 LAKHS TO M/S DHEERAJ ESTATES PRIVATE LIMITED IN DECEMBER 2010. THEREFOR E, ALL THE PAYMENTS MADE BY M/S DHEERAJ ESTATES PRIVATE LIMITED TO THE ASSESSEE AFTER THE RECEIPT OF RS. 75 LAKHS (I.E. RS.9.50 LAKHS) CANNOT BE CONSTRUED AS LOAN/ADVANCE BUT AS AMOUNTS PAID FROM THE SAID RS.75 LAKHS BRINGING IT OUT OF THE PURVIEW OF SECTIO N 2(22)(E) OF THE ACT. IN VIEW OF THE ABOVE I FOUND THAT AN AMOUNT OF RS.11,60,000/ - WAS PAID ON ACCOUNT OF DIRECTORS REMUNERATION WHICH M/S DHEERAJ ESTATES PVT. LTD. WAS SUPPOSED TO PAY. A SUM OF RS.9.50 LAKHS WAS PAID OUT OF THE AMOUNT OF RS.75 LAKHS DE POSITED BY THE ASSESSEE WITH DHEERAJ ESTATES PVT. LTD. IN DECEMBER, 2010. TOTAL OF THESE TWO PAYMENTS WORKED TO BE RS.21,10,000/ - (RS.11,60,000 + 9,50,000). THE PAYMENT MADE BY DHEERAJ ESTATES PVT. LTD. TO THE ASSESSED DURING THE ITA NO. 3 152 /1 5 3 YEAR WAS RS. 20,00,000/ - , W HICH IS BELOW RS.21.10 LAKHS. ACCORDINGLY, NO ADDITION U/S.2(22)(E) IS WARRANTED. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 27/07 / 201 6 . SD/ - ( R.C.SHARMA ) / ACCOUNTANT MEMBER MUMBAI ; DATED 27/07 /201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / T HE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//