DCIT, CENTRAL CIRCLE-2(2), CHENNAI vs. M/S. MUKUNDA LAND DEVELOPERS PVT LIT., CHENNAI

ITA 642/CHNY/2023Status: DisposedITAT Chennai21 February 2024AY 2021-22Bench: Shri V. Durga Rao (Judicial Member), Shri Manjunatha, G. (Accountant Member)68 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that for Section 2(22)(e) to apply, the recipient must be a shareholder of the lending company. Since the assessee companies were not shareholders of M/s. IG3 Infra Limited, the payments could not be taxed as deemed dividend in their hands.

What were the facts?

During a search, it was found that M/s. IG3 Infra Limited made significant payments to the assessee companies for works undertaken. The Assessing Officer treated these payments as deemed dividend under Section 2(22)(e) of the Income Tax Act.

What were the issues?

Whether payments made by a company to another company, where the recipient is not a shareholder of the lender, can be treated as deemed dividend under Section 2(22)(e) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 2(22)(e)

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Cases cited in this judgment(18)Show list

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Heard together (3 matters)

I.T.A. No.642/Chny/2023
I.T.A. No.643/Chny/2023
I.T.A. No.644/Chny/2023

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अिधकरण, ’ए’ "ायपीठ, चे"ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी वी दुगा" राव "ाियक सद" एवं "ी जी. मंजुनाथा, लेखा सद" के सम"

Before Shri V. Durga Rao, Judicial Member & Shri Manjunatha, G., Accountant Member आयकर अपील सं./I.T.A. No.642/Chny/2023 िनधा"रण वष"/Assessment Year: 2021-22 The Deputy Commissioner of Vs. M/s. Mukunda Land Developers Pvt.

Ltd., Plot No. 198, 13th Cross Street, Sri Income Tax, Central Circle 2(2), Investigation Building, Sai Nagar, Okkiam Thoraipakkam, Chennai 34. Chennai 600 097. [PAN:AAHCP7751K] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.643/Chny/2023 िनधा"रण वष"/Assessment Year: 2021-22 The Deputy Commissioner of M/s. Mugilan Structurals Pvt. Ltd., Chennai 34. Chennai 600 097. [PAN:AAJCM3182D] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.644/Chny/2023 िनधा"रण वष"/Assessment Year: 2021-22 The Deputy Commissioner of M/s. MAC Quality Builders Pvt. Ltd., Plot No. 198, 13th Cross Street, Sri Sai Income Tax, Central Circle 2(2), Investigation Building, Nagar, Okkiam Th

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