- (1.) The present appeal is filed by the assessee against the judgment and order dated 23.10.2012, passed by the Income Tax Appellate Tribunal, Agra in ITA NO.82/Agra/2012, for the assessment year 2008-09.
(2.) On 12.2.2013, a coordinate Bench has admitted the appeal on the following substantial questions of law:- "(i) Whether on the facts and circumstances of the case the findings of the Income Tax Appellate Tribunal that money lending does not constitute 'substantial business' of the lending company, is correct ? (ii) Whether the Tribunal had erred in law in plainly drawing negative inferences on the basis of manner of recording entries in the books of accounts without appreciating the true nature and character of the transaction/account ? (iii) Whether in the facts and circumstances of the case, it is correct on the part of the Tribunal to draw unconstructive supposition against the financing business of the company when it is not the case of the revenue/department that financing was ultra vires the object of the lending company ? (iv) Whether in the absence of a finding that the company had accumulated profits, the impugned transaction could be treated as a deemed dividend ?"
(3.) The brief facts of the case are that the assessee has the income from the house property, share from firm and from trading of shares of companies. During the assessment year under consideration, the assessee has taken unsecured loan from M/s Krishna Bead Industries Private Limited Company (hereinafter known as 'Company') of Rs.37,28,059/-. The assessee is a Director and having a substantial interest in the company. The A.O. applied the provisions of Section 2(22)(e) of the Income Tax Act, 1961, pertaining to the advances of Rs.37,28,059/- and brought the same under the clutches of the deemed dividend. The same was upheld not only by the first appellate authority but also by the Tribunal. Still not being satisfied, the assessee has filed the present appeal.;