MOHAN EXPORT (INDIA) PVT LTD,DELHI vs. DCIT,CIRCLE-17(2), DELHI

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ITA 1716/DEL/2025Status: DisposedITAT Delhi15 December 2025AY 2017-18Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. Manish Agarwal (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee did not meet the statutory criteria of being a registered or beneficial shareholder under Section 2(22)(e). Citing relevant precedents, the Tribunal concluded that the dividend addition was not sustainable.

What were the facts?

The assessee filed an appeal against the order confirming an addition under Section 2(22)(e) of the Income Tax Act. The assessee contended that the provisions of Section 2(22)(e) were wrongly applied as they did not hold 10% or more shares in the company from which the loan was received.

What were the issues?

Whether the addition under Section 2(22)(e) is sustainable when the assessee does not hold the statutory minimum shareholding percentage in the company providing the loan.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

Hearing: 15.12.2025Pronounced: 15.12.2025

Asstt. Year: 2017-18 Mohan Export (India) Pvt. Ltd., Vs DCIT, 8-9, Mohan House, Zamrudpur Circle-17(2), Community Centre, Kailash Colony, New Delhi New Delhi-110048 (APPELLANT) (RESPONDENT) PAN No. AAACM4168J Assessee by : None Revenue by : Sh. Mahesh Kumar, CIT-DR Date of Hearing: 15.12.2025 Date of Pronouncement: 15.12.2025 ORDER

Per Satbeer Singh Godara, Judicial Member:

1.

This assessee’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1073230960(1) dated 13.02.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961.

2.

Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.

3.

The assessee pleads the following substantive grounds in the instant appeal:

“i) That the ld. CIT(A) has erred in facts and in law in confirming the addition of Rs.5,57,96,604/- under the provisions of section 2(22)(e) and further enhancing the Mohan Export (India) Pvt. Ltd. addition by Rs.9,85,07,883/- to Rs.15,43,04,487/-. That the addition being contrary to provisions of law be deleted. ii) That it may be held that the provisions of section 2(22)(e) have been wrongly applied as the assessee does not hold 10% shares or more in the company giving the loan and the addition of Rs.15,43,04,487/- being unwarranted and unjustified be deleted.”

4.

Learned CIT-DR vehemently argues that both the lower authorities herein have rightly invoked section 2(22)(e) deemed dividend addition in the assessee’s case involving the sum in question of Rs.5,57,96,604/- in their respective findings. He could hardly dispute the clinching fact that this assessee and M/s Mohan Energy Corporation (P) Ltd. have common shareholders Sh. Mohand Puri and Smt. Neeru Puri than the appellant itself having a stake therein; as the case may be.

5.

Faced with this situation and in light of the fact that the assessee does not satisfy the statutory criteria of being a registered or a beneficial shareholder u/s 2(22)(e) of the Act, we hereby quote ACIT Vs. Bhaumik Color Labs Pvt. Ltd. 118 ITD 1 (Mumbai) (SB) and CIT Vs. Ankitech (P) Ltd. (2011) 340 ITR 14 (Del.) to conclude that the impugned dividend addition is not sustainable in it’s hands. The same stands deleted in very terms therefore.

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