Assessee is not the shareholder & transaction in ordinary business, sec. 2(22)(e) doesn’t apply

Brief Facts

The facts related to this issue in brief are that the AO, during the course of assessment proceedings noticed that the assessee had taken an advance of Rs. 10,00,000/- from M/s. Precision Stock and Credit Pvt. Ltd. in which Shri Jasbir Singh held 22,000 out of 1,03,500 shares i.e. a beneficial holding of 21% shares with voting right. He further, observed that Shri Jasbir Singh had holding of 24.52% in assessee’s company and that the balance sheet of M/s Precision Stock and Credit Pvt. Ltd.

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