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“Section 2(22)(e)(i)”

Section References (mined)Section 2Section 2(22)(e)(i)15 judgments

The decision most relied on for Section 2(22)(e)(i) is CIT v. Winsome Textile Industries Ltd. (319 ITR 204), cited in 378 judgments on BharatTax.

Leading authorities on Section 2(22)(e)(i)

CIT v. Winsome Textile Industries Ltd.
319 ITR 204 · 2009 · High Court
378
citing judgments

Section 14A of the Income-tax Act, 1961, which disallows expenditure incurred in relation to exempt income, is not applicable if the assessee has not earned any exempt income in the relevant assessment year.

CIT v. Ankitech (P) Ltd.
340 ITR 14 · 2012 · High Court
202
citing judgments

Deemed dividend under section 2(22)(e) cannot be taxed in the hands of a non-shareholder. The Supreme Court confirmed this view, affirming the Delhi High Court's decision in Ankitech.

DCIT v. Core Health Care Ltd.
298 ITR 194 · 2008 · Supreme Court
165
citing judgments

Interest expenditure incurred for acquiring capital assets, even if capitalized in the books, is deductible if for the purpose of business. Section 36(1)(iii) is a self-contained code regarding such deductions.

Pradip Kumar Malhotra v. CIT
338 ITR 538 · 2011 · High Court
152
citing judgments

Section 2(22)(e) of the Income Tax Act, which addresses deemed dividends, does not apply to loans or advances provided by a company to its shareholders if these transactions occur in the normal course of business, are driven by business expediency, or are made in consideration of a benefit conferred upon the company by the shareholder. Conversely, gratuitous loans or advances given to shareholders fall within the purview of this section.

Jamshedpur Motor Accessories Stores v. CIT
72 ITR 612 · 1969 · Supreme Court
140
citing judgments

The reasonableness of an expenditure for business purposes must be assessed from the businessman's perspective, not the revenue's, and the primary motive to earn income directly is not a prerequisite for its admissibility as a deduction.

H T Media Ltd. v. PCIT
399 ITR 576 · 2017 · High Court
132
citing judgments

The Assessing Officer must first record satisfaction that the assessee’s claim regarding expenditure incurred for earning exempt income is incorrect or unreasonable before applying the provisions of Rule 8D to determine such disallowance under Section 14A(2) of the Income Tax Act.

CIT v. Creative Dyeing & Printing Pvt. Ltd.
318 ITR 476 · 2009 · High Court
119
citing judgments

Genuine trade advances or amounts advanced for bona fide business transactions, driven by commercial expediency, do not fall within the definition of deemed dividend under section 2(22)(e) of the Income-tax Act.

CIT v. Raj Kumar
318 ITR 462 · 2009 · High Court
119
citing judgments

Genuine trade advances made by a company in the ordinary course of business to a shareholder do not fall within the definition of deemed dividend under Section 2(22)(e) of the Income-tax Act.

Judgments citing Section 2(22)(e)(i)

ACIT., Central Circle-2(4), Hyderabad vs. Satyanarayana Reddy Manne, Hydreabad

ITA 472/HYD/2025[2017-18]Status: DisposedITAT Hyderabad30 Jun 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA M.V. Prasad andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 143(3)Section 153ASection 251(1)(a)

IN THE INCOME TAX APPELLATE TRIBUNAL A" BENCH: HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G

Satyanarayana Reddy Manne, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, appeal filed by the Assessee is allowed and appeal filed by the Revenue is dismissed

ITA 382/HYD/2025[2017-18]Status: DisposedITAT Hyderabad30 Jun 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA M.V. Prasad and Shri K.S. Rajendra KumarFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 143(3)Section 153ASection 251(1)(a)

Sciences Pvt. Ltd., in excess of 150% of sales amounting to Rs.121,11,83,360/- as loans and advances for the purpose of section 2(22)(e) of the Act. Similarly, the Assessing Officer has considered excess payment by M/s. Mythri Labs Pvt. Ltd., to M/s. MSN Life Sciences ... purchases or sales as trade advances and the remaining amount of advance has been treated as loans or advances within the meaning of section 2(22)(e) of the Act. The learned CIT(A) without considering the relevant facts simply held that, payments in excess of 200% of sales should

ACIT., Central Circle-2(4), Hyderabad vs. M/S. Maithri Laboratories Private Limited, Hyderabad

ITA 1124/HYD/2024[2020-21]Status: DisposedITAT Hyderabad04 Feb 2025AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon'Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 143(3)Section 153ASection 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act. 3. The brief facts of the case are that the appellant company is engaged in the business of manufacturing ... after examination of the ledger accounts of the recipient company, observed that the basic ingredients of ‘deemed dividend' as defined under section 2(22)(e) of the Act, such as common substantial shareholding of Shri MSN Reddy in the Appellant Company, two recipient companies and the availability of accumulated profits

ACIT., Central Circle-2(4), Hyderabad vs. M/S. Msn Life Sciences Pvt. Ltd., Hyderabad

ITA 1123/HYD/2024[2020-21]Status: DisposedITAT Hyderabad04 Feb 2025AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

fact that the outstanding de'bit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act." 3. The brief facts of the case are that the appellant company is engaged in the business of manufacturing of bulk

ACIT., Central Circle-2(4), Hyderabad vs. Msn Pharmachem Pvt. Ltd., Hyderabad

In the result, the appeal of assessee in ITA No

ITA 1122/HYD/2024[2019-20]Status: DisposedITAT Hyderabad04 Feb 2025AY 2019-20

Bench: Hon’Bleand

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act.” ITA Nos.1067, 1068, 1071 and 1072/Hyd/2024 & ITA No.1123/Hyd/2024 3. The brief facts of the case are that the appellant company ... after examination of the ledger accounts of the recipient company, observed that the basic ingredients of ‘deemed dividend’ as defined under section 2(22)(e) of the Act, such as common substantial shareholding of Shri MSN Reddy in the Appellant Company, two recipient companies and the availability of accumulated profits

Msn Life Sciences Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

ITA 1072/HYD/2024[2020-21]Status: DisposedITAT Hyderabad04 Feb 2025AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act. 3. The brief facts of the case are that the appellant company is engaged in the business of manufacturing

Msn Life Sciences Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

ITA 1071/HYD/2024[2019-20]Status: DisposedITAT Hyderabad04 Feb 2025AY 2019-20
Section 132Section 143(2)Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act." 3. The brief facts of the case are that the appellant company is engaged in the business of manufacturing

Msn Life Sciences Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, the appeal of assessee in ITA No

ITA 1068/HYD/2024[2014-15]Status: DisposedITAT Hyderabad04 Feb 2025AY 2014-15

Bench: Hon’Bleand

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act.” ITA Nos.1067, 1068, 1071 and 1072/Hyd/2024 & ITA No.1123/Hyd/2024 3. The brief facts of the case are that the appellant company ... after examination of the ledger accounts of the recipient company, observed that the basic ingredients of ‘deemed dividend’ as defined under section 2(22)(e) of the Act, such as common substantial shareholding of Shri MSN Reddy in the Appellant Company, two recipient companies and the availability of accumulated profits

Msn Life Sciences Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

ITA 1067/HYD/2024[2013-14]Status: DisposedITAT Hyderabad04 Feb 2025AY 2013-14

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act." 3. The brief facts of the case are that the appellant company is engaged in the business of manufacturing

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

Appeal are dismissed

ITA 1053/HYD/2024[2014-15]Status: DisposedITAT Hyderabad04 Feb 2025AY 2014-15

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act.” ITA Nos.1050 to 1053/Hyd/2024 and ITA 1122/Hyd/2024 3. The brief facts of the case are that the appellant company ... after examination of the ledger accounts of the recipient company, observed that the basic ingredients of ‘deemed dividend’ as defined under section 2(22)(e) of the Act, such as common substantial shareholding of Shri MSN Reddy in the Appellant Company, two recipient companies and the availability of accumulated profits

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

Appeal are dismissed

ITA 1052/HYD/2024[2013-14]Status: DisposedITAT Hyderabad04 Feb 2025AY 2013-14

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. and Shri K.S. Rajendra KumarFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act.” 3. The brief facts of the case are that the appellant company is engaged in the business of manufacturing ... after examination of the ledger accounts of the recipient company, observed that the basic ingredients of ‘deemed dividend’ as defined under section 2(22)(e) of the Act, such as common substantial shareholding of Shri MSN Reddy in the Appellant Company, two recipient companies and the availability of accumulated profits

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

Appeal are dismissed

ITA 1051/HYD/2024[2012-13]Status: DisposedITAT Hyderabad04 Feb 2025AY 2012-13

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act.” ITA Nos.1050 to 1053/Hyd/2024 and ITA 1122/Hyd/2024 3. The brief facts of the case are that the appellant company ... after examination of the ledger accounts of the recipient company, observed that the basic ingredients of ‘deemed dividend’ as defined under section 2(22)(e) of the Act, such as common substantial shareholding of Shri MSN Reddy in the Appellant Company, two recipient companies and the availability of accumulated profits

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

Appeal are dismissed

ITA 1050/HYD/2024[2011-12]Status: DisposedITAT Hyderabad04 Feb 2025AY 2011-12

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.A. and Shri K.S. Rajendra KumarFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 153ASection 153A(1)Section 2(22)(e)

appreciating the fact that the outstanding debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact loan/advance which attracts the provisions of section 2(22)(e) of the Act.” 3. The brief facts of the case are that the appellant company is engaged in the business of manufacturing ... after examination of the ledger accounts of the recipient company, observed that the basic ingredients of ‘deemed dividend’ as defined under section 2(22)(e) of the Act, such as common substantial shareholding of Shri MSN Reddy in the Appellant Company, two recipient companies and the availability of accumulated profits

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, the appeals filed by the assessee for assessment years 2019-20 and 2020-21 are partly allowed

ITA 885/HYD/2024[2020-21]Status: DisposedITAT Hyderabad08 Nov 2024AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.AFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 139(1)Section 143(3)Section 153ASection 2(22)(e)

appellant company cannot be construed as excess payments which fall under the scope of "advances or loans" within the meaning of section 2(22)(e) of the Act. 3.2. In the facts and circumstances of the case, the Ld.CIT(A) ought to have appreciated that the transactions between the appellant ... funds on a need basis and such transactions do not fall under the ambit of "advances or loans" within the meaning of section 2(22)(e) of the Act.” 3.3. In the facts and circumstances of the case, the Ld.CIT(A) ought to have appreciated that deemed dividend

Msn Pharmachem Private Limited, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, the appeals filed by the assessee for assessment years 2019-20 and 2020-21 are partly allowed

ITA 884/HYD/2024[2019-20]Status: DisposedITAT Hyderabad08 Nov 2024AY 2019-20

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M.V. Prasad, C.AFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 132Section 139(1)Section 143(3)Section 153ASection 2(22)(e)

appellant company cannot be construed as excess payments which fall under the scope of "advances or loans" within the meaning of section 2(22)(e) of the Act. 3.2. In the facts and circumstances of the case, the Ld.CIT(A) ought to have appreciated that the transactions between the appellant ... funds on a need basis and such transactions do not fall under the ambit of "advances or loans" within the meaning of section 2(22)(e) of the Act.” 3.3. In the facts and circumstances of the case, the Ld.CIT(A) ought to have appreciated that deemed dividend