REKHA A BAROT,MUMBAI vs. DY CIT CC 9 (2)(1), MUMBAI

ITA 473/MUM/2020Status: DisposedITAT Mumbai26 April 2022AY 2007-087 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the advance paid for booking a flat between two companies constituted business transactions. Since there was no evidence that the assessee directly or indirectly enjoyed the benefit of these transactions, the provisions of section 2(22)(e) could not be invoked.

What were the facts?

The assessee filed a return of income, and a search action was conducted. The Assessing Officer made an addition on account of deemed dividend under section 2(22)(e) on a protective basis in the assessee's hands, with the substantive addition in another company's hands. The ITAT had previously remitted the matter back to the Assessing Officer for denovo consideration.

What were the issues?

Whether an advance paid between two companies for booking a flat can be treated as deemed dividend under section 2(22)(e) in the hands of a shareholder, and whether the assessee indirectly enjoyed the benefit of such transactions.

Which sections of the Income-tax Act were involved?

Section 2(22)(e),Section 153A,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI S. RIFAUR RAHMAN, HONBLE & SHRI AMARJIT SINGH, HONBLEShri Dalpat Shah Shri T. Shankar

For Appellant: Shri Dalpat Shah
For Respondent: Shri T. Shankar
Hearing: 09.02.2022Pronounced: 26.04.2022

PER S. RIFAUR RAHMAN (AM)

1.

This appeal is filed by the assessee against order of the Learned Commissioner of Income Tax (Appeals)-16, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 29.11.2019 for the A.Y. 2007-08. 2. Brief facts of the case are, assessee filed her original return of income for the A.Y. 2007-08 on 31.07.2007 declaring total income of 2 Rekha A. Barot ₹.26,09,287/-. A search and seizure action was undertaken by the Income Tax Department at the premises of the assessee on 19.07.2007. Notice u/s. 153A of the Act dated 27.02.20008 were issued and served on the assessee. In response assessee filed her return of income on 14.03.2008 declaring tota

The order continues below.

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