THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-5(3), MUMBAI vs. M/S SAMSON MARITIME LTD, MUMBAI

ITA 2343/MUM/2023Status: DisposedITAT Mumbai17 March 2025AY 2016-2017Bench: SHRI AMIT SHUKLA (Judicial Member), MS PADMAVATHY S (Accountant Member)39 pages
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What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to consider the property's value as per the registered valuer's report of Rs. 28.68 Crores. The difference between this value and the sale consideration was rightly held to be taxable as deemed dividend.

What were the facts?

The assessee, Samson Maritime Ltd., transferred an office property to its subsidiary, Underwater Services Company Ltd. (USCL), for Rs. 30 Crores. The stamp duty value was Rs. 15.70 Crores. The Assessing Officer (AO) treated the difference as deemed dividend under Section 2(22)(d) of the Income Tax Act. The CIT(A) reduced the addition by accepting a valuation report of Rs. 28.68 Crores.

What were the issues?

Whether the difference between the sale consideration of a property transferred to a subsidiary and its market value, as determined by a valuer, constitutes deemed dividend under Section 2(22)(d) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 2(22)(d)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, ‘G‘ BENCH

Before: SHRI AMIT SHUKLA & MS PADMAVATHY S

For Appellant: Shri Ajay R Singh & Shri
For Respondent: Shri Dr Kishor Dhule, CIT
Hearing: 18/12/2024Pronounced: 17/03/2025

Heard together (3 matters)

ITA No.2258/Mum/2023
ITA No.2326/Mum/2023
ITA No.2330/Mum/2023

Read from the judgment's own cause title. This page is filed under one of them.

PER AMIT SHUKLA (J.M): The aforesaid appeals have been filed by the assessee as well as by the Revenue against separate order of even date i.e. 24/04/2023 passed by CIT(A)-53, Mumbai for

The order continues below.

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