Judgment

Sen, J.-The appellant, Miss P. Sarada, is a major shareholder of Messers Universal Radiators Pvt. Ltd. (hereinafter referred to as “the company”). It is a company in which public were not substantially interested. While completing the assessment of the appellant for the assessment year 1973-74, the Income Tax Officer found that during the period 3.7.1972 to 22.3.1973 she had withdrawn a total sum of Rs. 93,027 from the company. The appellant had a running account with the company. At the material time she did not have any credit balance in her account with the company. This excess withdrawal was treated by the Income Tax Officer as deemed dividend under Section 2(22)(e) of the Income Tax Act on two grounds : (1) The assessee had no credit balance in her accounts with the said company at the material time; and (2) that there was sufficient accumulated profits of the company from which the excess withdrawal was made by the assessee. The Income Tax Officer included this amount of Rs. 93,027 in the computation of the appellant’s income. The assessee’s appeal to the Appellate Assist­ant Commissioner was dismissed. However, on further appeal, the Tribu­nal upheld the case of the