NAND KISHORE MALHAN,NEW DELHI vs. DCIT, NEW DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2017-18
arises against the Addl./JCIT(A)-1, Ahemadabad’s DIN & order
No.ITBA/APL/S/250/2025-26/1078966067(1) dated 28.07.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
The assessee/appellant herein raises his sole substantive grievance directed against both the learned lower authorities’ action treating his cash deposits of Rs.18,45,500/- as deemed dividend u/s 2(22)(e) of the Act; in assessment order dated 30.12.2019 as upheld in the lower appellate discussion. Nand Kishore Malhan
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4. Faced with this situation, learned counsel has placed on record the assessee’s company M/s Skyline Constructions’
financials indicating total accumulated losses as on 13.11.2016
amounting to Rs.2,96,342/-; and, therefore, this tribunal is of the considered view that given the fact that the above entity was not having accumulated profits, the impugned deeming fiction of dividends could not have been invoked by both the learned lower authorities. The impugned deemed dividend addition is deleted in very terms therefore.
This assessee’s appeal is allowed. Order Pronounced in the Open Court on 23/12/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 23/12/2025
*Subodh Kumar, Sr. PS*