MATESHWARI BUS OPERATION PRIVATE LIMITED,AHEMDABAD vs. INCOME TAX OFFICER, TDS WARD 2, AHEMDABAD

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ITA 1073/AHD/2025Status: DisposedITAT Ahmedabad29 September 2025AY 2015-16Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL (Judicial Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that TBOPL was not a registered shareholder of the assessee-company, thus the primary condition for applying Section 2(22)(e) was not met. Citing precedents, it reiterated that deemed dividend provisions apply only when the recipient is a shareholder. As it was a commercial lending, neither Section 2(22)(e) nor Section 201(1) of the Act were attracted.

What were the facts?

The assessee, Mateshwari Bus Operations Pvt. Ltd., advanced Rs.20,00,000 to M/s Tak Bus Operations Pvt. Ltd. (TBOPL), a related concern. The Assessing Officer treated this as 'deemed dividend' under Section 2(22)(e) and held the assessee liable for not deducting TDS under Section 194. The Ld. CIT(A) dismissed the assessee's appeal ex-parte.

What were the issues?

Whether an advance to a related company, where the recipient is not a registered shareholder, can be treated as 'deemed dividend' under Section 2(22)(e) and attract TDS liability under Section 194 read with Sections 201(1)/201(1A).

Which sections of the Income-tax Act were involved?

Section 250,Section 2(22)(e),Section 194,Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

For Appellant: Shri Amit Mundhra, AR
For Respondent: Shri Prateek Sharma, Sr. DR
Hearing: 05.08.2025Pronounced: 29.09.2025

आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to :

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