OMM SHREE REALCON PVT. LTD,BHUBANESWAR vs. PR.CIT-1, BHUBANESWAR

ITA 97/CTK/2023Status: DisposedITAT Cuttack28 June 2023AY 2018-1931 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the loans could not be treated as deemed dividend as the assessee was not a shareholder in the lending companies, and the jurisdictional High Court's decision supported this. Regarding unexplained cash credits, the Tribunal found that the Assessing Officer had examined the issue during e-assessment and taken a plausible view.

What were the facts?

The assessee received loans from three companies and a director. The Principal CIT (Pr. CIT) invoked revisionary powers under Section 263, treating these loans as deemed dividend and also as unexplained cash credits. The original assessment order had accepted the returned income.

What were the issues?

Whether loans received by a company from other companies where its directors are shareholders constitute deemed dividend in the hands of the recipient company, and whether the Pr. CIT can revise an assessment order where the AO has examined an issue and taken a plausible view.

Which sections of the Income-tax Act were involved?

Section 2(22)(e),Section 68,Section 263

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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: AND RAJESH KUMAR

For Appellant: Shri S.K.Sarangi, CA
For Respondent: Shri M.K.Gautam, Pr. CIT (OSD)

Per Bench

This is an appeal filed by the assessee ag This is an appeal filed by the assessee against the order passed ainst the order passed u/s.263 of the Act by the ld Pr.CIT u/s.263 of the Act by the ld Pr.CIT-Bhubaneswar-1 dated 27.3.2023 in Appeal No. ITBA/REV/F/REV5/2022 ITBA/REV/F/REV5/2022-23/1051381275(1) 23/1051381275(1) for the assessment year 2018-19. 19. 2. Shri S.K.Saran Shri S.K.Sarangi, CA appeared for the assessee and Shri gi,

The order continues below.

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