VIPLAV SOOD,SHIMLA vs. DCIT, CC, CHANDIGARH

The present appeal has been preferred by the assessee against the order dated 28.06.2019 of the Ld. Commissioner of Income Tax (Appeals)- 3, Gurgaon [in short ‘CIT(A)’]. 1 & 1244-C-2019 Shri Viplav Sood, Shimla 2. The assessee in these appeals has agitated the addition made by the lower authorities on account of deemed dividend u/s 2(22)(e) of the Income Tax Act, 1961 (in short 'the Act').

At the outset, Ld. Counsel for the assessee has brought our attention to the impugned assessment order and submitted that the Assessing officer while making the impugned additions has taken into account the figures of Mahashe Resorts Pvt. Ltd., wherein, the assessee had credit balance standing in their account

The Ld. Counsel has further invited our attention to the opening lines of para 6 of the order, wherein, the discussion regarding the addition on account of deemed dividend has been made which shows that, in fact, the Assessing Officer has taken note of certain loans and advances standing in the name of the assessee from Company M/s Mahashe Jewellers Pvt Ltd. in which the assessee is a director having substantial interest but while concluding, the Assessing Officer has mistakenly taken the figures of credit balance of the assessee in the account of Mahashe Resorts Pvt Ltd..

The Ld. DR has not objected to the same.

In view of this, the impugned order of the Ld. CIT(A) is set aside and the matter is restored to the file of the Assessing Officer for decision afresh on this issue.

Needless to say that the Ld. Assessing Officer will give proper opportunity to the assessee to present its case. Both the appeals of the assessee are treated as allowed for statistical purposes. Order pronounced on 04/03/2021 Sd/- Sd/- ( ANNAPURNA GUPTA) (SANJAY GARG ) Accountant Member Judicial Member Date: 04/03/2021 Santosh