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Naresh Chander Gupta Versus Income-tax Officer, Ward 15 (3) , New Delhi

2016 (2) TMI 793 - ITAT DELHI

Reopening of assessment - Addition u/s 2(22)(e) - Held that:- First is validity of initiation of re-assessment proceedings and the second, taxability on a sum of ₹ 6,79,956/- representing to 50% of the sum of ₹ 13,59,911/- in the hands of appellant. As to the validity of re assessment proceedings, we do not find any justification to disturb the conclusion arrived at by the ld. CIT(A) who has rightly held the action as valid laying his hands on the decision of Hon’ble Supreme Court in .....

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to have been raised at the initial stage before the Assessing Officer. Therefore, finding on validity of re-assessment proceedings stands confirmed.

Once, the taxability of the impugned sum as deemed dividend in the hands of the common directors of the lender company, stood decided by the Tribunal and attained finality, we have no option except to respectfully follow the decision of co-ordinate bench of Tribunal in order to maintain the balance of justice. No such evidence is availabl .....

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t attracting the provisions of section 2(22)(e) of the Act. In view of this discussion, we do not find any good ground to interfere with the impugned order on this count too. Accordingly, the appeal of the assessee is liable to be dismissed. - Decided against assessee. - ITA No. 5688/Del./2014 - Dated:- 19-1-2016 - SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For The Appellant : Sh. K. Sampath, Advocate For The Respondent : Sh. A.C. Mohanty, D.R. ORDER Per L.P. Sahu, A .....

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143(3)/147 of the Act at ₹ 9,53,380/- against the already determined income of ₹ 2,73,424/-. 3. In making an addition in a sum of ₹ 6,79,956/- treating the transaction between M/s. RCMC share Registry Pvt. Limited and M/s. PAN Portfolios Pvt. Limited as deemed dividend taxable u/s. 2(22)(e) of the Act in the hands of the assessee. 4. In charging interest u/s. 234B of the Act in a sum of ₹ 1,90,180/-. 2. The brief facts of the case are that the assessee is a common directo .....

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e hands of M/s. PAN. 3. M/s. PAN preferred an appeal against this order before the ld. CIT(A), who vide order dated 16.11.2009 directed the Assessing Officer as follows : Respectfully following the ratio of the above judgments on the issue, the addition of ₹ 13,59,911/- in the hands of the appellant company cannot be sustained as the amount can be brought to tax only in the hands of the shareholders of the lender company, i.e., Shri Naresh Chander Gupta, Pankaj Gupta and Anuj Gupta and not .....

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o. 1 is allowed. 4. The aforesaid order of the ld. CIT(A) was challenged by the Revenue before ITAT, where the order of the CIT(A) stood confirmed vide order dated 12.03.2010. 5. In view of the decision of ld. CIT(A) in the case of M/s. PAN for the year under consideration, the Assessing Officer formed a belief that a sum of ₹ 13,59,911/- which was liable to be assessed in the hands of common share holder, i.e., the appellant, has escaped assessment and after initiating the proceedings u/s .....

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u/s. 147 stating that the re-assessment proceedings have been taken without having any reason of escapement of income. He, relying upon a decision of ITAT, Kolkata in IFB Agro Industries Ltd. vs. JCIT, 42 taxmann.com 246, also contended that the transaction between M/s. RCMC and PAN is in the nature of inter corporate deposit and thus, the provisions of section 2(22)(e) of the Act are not applicable to such deposits, as these deposits are neither advances nor loans and, therefore, such transacti .....

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he Tribunal in the case of M/s. PAN. Therefore, the impugned order does not call for any interference. 9. Having considered the rival submissions in the light of material available on record, we find that there are two issues which need adjudication in this appeal. First is validity of initiation of re-assessment proceedings and the second, taxability on a sum of ₹ 6,79,956/- representing to 50% of the sum of ₹ 13,59,911/- in the hands of appellant. As to the validity of re assessmen .....

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roceedings u/s. 147 on this count cannot be said to be invalid. Besides, after receipt of reasons recorded, no such grievance/objection on initiation of proceedings u/s. 147 appears to have been raised at the initial stage before the Assessing Officer. Therefore, finding on validity of re-assessment proceedings stands confirmed. 10. As far as the second issue regarding taxability of a sum of ₹ 6,79,956/- representing to 50% of the sum of ₹ 13,59,911/- in the hands of appellant, being .....

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