RAMSAMY PONGIANNA GOUNDER DESAMANI,PALLIPALAYAM vs. ITD, WARD 2, , TIRUCHENGODE

ITA 2438/CHNY/2024Status: DisposedITAT Chennai16 October 2025AY 2011-1213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the company M/s. Best Cheran Spintex India Limited was previously assessed under Section 2(22)(e) but its appeal was allowed as it was not a registered shareholder of the lending company. The Tribunal is now examining if the deeming provision applies to the individual shareholder.

What were the facts?

The assessee, a shareholder in M/s. Best Cheran Spintex India Limited, had his assessment reopened after four years. The Assessing Officer (AO) proposed to add Rs. 1,79,52,270/- as deemed dividend under Section 2(22)(e) of the Income Tax Act, 1961.

What were the issues?

The key issues are the validity of reopening the assessment after four years without fresh material and the applicability of Section 2(22)(e) to the assessee as a shareholder, considering prior proceedings involving the company.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 151,Section 2(22)(e),Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, B BENCH, CHENNAI

Before: SHRI S.S. VISWANETHRA RAVI & SHRI S. R. RAGHUNATHA

Pronounced: 09.09.2025

PER S. R. RAGHUNATHA, AM: This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [herein after “ld. CIT(A)] dated 16.07.2024 and pertains to assessment year 2011-12. :-2-: ITA. No.:2438/Chny/2024

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