MESERS G.G CONTINEENTAL TRADES PVT.LTD,BATHINDA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-I, BATHINDA

ITA 189/ASR/2018Status: DisposedITAT Amritsar11 July 2023AY 2014-1531 pages
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What did the Tribunal hold?

The Tribunal held that the transactions were for business expediency, with funds being advanced and repaid based on mutual business requirements and not for individual benefit of shareholders. Therefore, Section 2(22)(e) was not applicable.

What were the facts?

The assessee company, engaged in edible oil trading, had transactions with a group concern, M/s Gurdas Agro Pvt Ltd (GAPL), where it held a 17.20% shareholding. The Assessing Officer treated funds received from GAPL as deemed dividend under Section 2(22)(e) of the Income Tax Act, 1961.

What were the issues?

Whether funds advanced between group companies, which are in the same line of business and used for business exigencies, 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(15)Show list

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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Pronounced: 11.07.2023

Heard together (2 matters)

I.T.A. No.189/Asr/2018
I.T.A. No.513/Asr/2019

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

I.T.A. Nos.189/Asr/2018&513/Asr/2019 2 Assessment Years: 2014-15& 2016-17

Per:Anikesh Banerjee, JM: Both the instant appeals of the assessees company were filed against the order of the ld. Commissioner of Income Tax (Appeals),Bathinda,[in brevity the ‘CIT (A)’] order passed u/s 250 (6) of the Income Tax Act 1961, [in brevity ‘the Act’] for A.Ys. 2014-15& 2016-17. Theimpugned order was emanated from the order of the ld. Dy. Commissioner of Income Tax, Circle-1,

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