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“accumulated profits”

Special Rate ProvisionsSection 2(22)Section 2(22)462 judgments

ARIMILLI RAMA KRISHNA,WEST GODAVARI DIST vs. ACIT, CIRCLE-1, RAJAHMUNDRY

ITA 639/VIZ/2025[2014-15]Status: DisposedITAT Visakhapatnam18 Mar 2026AY 2014-15

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 194CSection 194JSection 2(22)(e)Section 263

reserves and surplus of Rs.2,14,97,772/-, thus held the excess amount withdrawn by the assessee, i.e., up to the extent of the accumulated profits available with the company as “deemed dividend” under section 2(22)(e) of the Act and made an addition of the same

JHV CONSTRUCTION CO. PVT. LTD.,KOLKATA vs. D.C.I.T., CC - 2(2), KOLKATA, KOLKATA

In the result, the appeal filed by the assessee is partly allowed but the order of the Pr

ITA 1289/KOL/2024[2014-2015]Status: DisposedITAT Kolkata09 Feb 2026AY 2014-2015

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 132Section 143(3)Section 153ASection 2(22)(e)Section 263Section 68

such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits." 6. Accordingly, the payment of loan of Rs.72,78,469/- paid by Welcome Distilleries Private Limited to the assessee, wherein Shri Heera Lal Jaiswal ... Welcome ITA No.: 1289/KOL/2024 Assessment Year: 2014-15 JHV Construction Co. Pvt. Ltd. Distilleries Private Limited and M/s. Welcome Distilleries Private Limited had accumulated profits, the loan received by the concern in which the shareholder of the assessee company had substantial interest was to be assessed as deemed dividend

ACIT, NEW DELHI vs. SH. ATUL BANSAL, NEW DELHI

In the result, grounds raised by the revenue are dismissed

ITA 2803/DEL/2017[2013-14]Status: DisposedITAT Delhi06 Feb 2026AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanatul Bansal, Vs. Acit, Central Circle 16 Farm No. 22, The Green Rajokri Delhi. New Delhi – 110 038. (Pan: Agcpb1274F) Acit, Central Circle 16, Vs, Atul Bansal Delhi Farm No. 22, The Green Rajokri New Delhi – 110 038. (Pan: Agcpb1274F) Assessee By : None Revenue By : Sh. Jitender Singh, Cit Dr Date Of Hearing : 18.11.2025 Date Of Order : 06.02.2026 O R D E R

For Appellant: NoneFor Respondent: Sh. Jitender Singh, CIT DR
Section 143(1)Section 143(2)Section 14ASection 2(22)(e)Section 54Section 54B

such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either cases possesses accumulated profits; But "dividend" does not include- (1) a distribution made in accordance with sub-clause (c) or sub-clause (d) in respect of any share ... shareholders of the demerged company (whether or not there is a reduction of capital in the demerged company).] Explanation 1- The expression "accumulated profits", wherever it occurs in this clause, shall not include capital gains arising before the 1 day of April, 1946, or after the 31 day of March

SH. ATUL BANSAL,NEW DELHI vs. ACIT, NEW DELHI

In the result, grounds raised by the revenue are dismissed

ITA 2737/DEL/2017[2013-14]Status: DisposedITAT Delhi06 Feb 2026AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanatul Bansal, Vs. Acit, Central Circle 16 Farm No. 22, The Green Rajokri Delhi. New Delhi – 110 038. (Pan: Agcpb1274F) Acit, Central Circle 16, Vs, Atul Bansal Delhi Farm No. 22, The Green Rajokri New Delhi – 110 038. (Pan: Agcpb1274F) Assessee By : None Revenue By : Sh. Jitender Singh, Cit Dr Date Of Hearing : 18.11.2025 Date Of Order : 06.02.2026 O R D E R

For Appellant: NoneFor Respondent: Sh. Jitender Singh, CIT DR
Section 143(1)Section 143(2)Section 14ASection 2(22)(e)Section 54Section 54B

such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either cases possesses accumulated profits; But "dividend" does not include- (1) a distribution made in accordance with sub-clause (c) or sub-clause (d) in respect of any share ... shareholders of the demerged company (whether or not there is a reduction of capital in the demerged company).] Explanation 1- The expression "accumulated profits", wherever it occurs in this clause, shall not include capital gains arising before the 1 day of April, 1946, or after the 31 day of March

ANANG KUNJVIHARIBHAI SHAH,AHMEDABAD vs. THE ITO, WARD-7(2)(1) (PREVIOUSLY DCIT, CIRCLE-1(1)(2)), AHMEDABAD

In the result, the appeal of the assessee is allowed

ITA 1156/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad03 Feb 2026AY 2015-16

Bench: Dr. B.R.R. Kumar, Vice-Shri Siddhartha Nautiyalincome-Tax Officer, Anang Kunjviharibhai Shah, Vs. Ward 7(2)(1), 1, Friends Colony, Sm Road, Vejalpur, Ahmedabad Ambawadi, Ahmedabad-380015 [Pan: Acups 2559 J] (Previously Dcit, Cir. 1(1)(2)) (Appellant) .. (Respondent) Appellant By: Shri Bandish Soparkar, Ar Respondent By: Shri Abhijit, Sr. Dr Date Of Hearing 27.11.2025 Date Of Pronouncement 03.02.2026

For Appellant: Shri Bandish Soparkar, ARFor Respondent: Shri Abhijit, Sr. DR
Section 2(22)(e)Section 250Section 80G

advance. The Ld. AR also submitted that section 2(22)(e) applies only when a company grants a loan or advance out of its accumulated profits to a shareholder, which results in a benefit flowing from the company to the shareholder; in the present case, the assessee’s credit balance ... such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits ; but "dividend" does not include— (i) a distribution made in accordance with sub-clause (c) or sub-clause (d) in respect of any share

DEPUTY COMMISSIONER OF INCOME TAX 1(1)(2), MUMBAI vs. HINDUSTAN UNILEVER LIMITED, MUMBAI

ITA 929/MUM/2018[2004-05]Status: DisposedITAT Mumbai30 Jan 2026AY 2004-05
For Appellant: Shri Nishant ThakkarFor Respondent: Shri Ajay Chandra, CIT-DR
Section 10BSection 145ASection 14ASection 250Section 80Section 801BSection 80H

falls outside\nscope of DTAA as, (a) Dividend is an amount declared, distributed or paid by\nthe Domestic Company out of the current or accumulated profits; (b) Dividend\nis additional income tax payable over and above the income tax chargeable in\nrespect in total income of such company. BFAR

HINDUSTAN UNILEVER LIMITED,MUMBAI vs. DY.CIT-1(1)(2), MUMBAI

ITA 1041/MUM/2018[2004-05]Status: DisposedITAT Mumbai30 Jan 2026AY 2004-05
For Appellant: Shri Nishant ThakkarFor Respondent: Shri Ajay Chandra, CIT-DR
Section 10BSection 145ASection 14ASection 250Section 80Section 801BSection 80H

falls outside\nscope of DTAA as, (a) Dividend is an amount declared, distributed or paid by\nthe Domestic Company out of the current or accumulated profits; (b) Dividend\nis additional income tax payable over and above the income tax chargeable in\nrespect in total income of such company. BFAR

SOPHOS TECHNOLOGIES PRIVATE LIMITED,AHMEDABAD vs. THE DCIT, CIRCLE-4(1)(1), AHMEDABAD

In the result the appeal filed by the assessee is allowed

ITA 466/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad29 Jan 2026AY 2016-17
Section 115Section 143(3)Section 234BSection 92C

falls outside scope of DTAA as, (a) Dividend is an amount declared, distributed or paid by the Domestic Company out of the current or accumulated profits; (b) Dividend is additional income tax payable over and above the income tax chargeable in respect in total income of such company. BFAR

ARUNKUMAR JAYANTILAL MUCHHALA ,MUMBAI vs. DY. COMMISSIONER OF INCOME TAX , MUMBAI

In the result the appeal filed by the assessee is allowed for statistical purposes

ITA 5400/MUM/2025[2011-12]Status: DisposedITAT Mumbai27 Jan 2026AY 2011-12

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 143(3)Section 2(22)(e)Section 250

deemed dividend u/s. 2(22)(e) of the Act 2. The CIT (A) has failed to appreciate that the payer company does not possess "accumulated profits" at the beginning of the financial year 2005-06 and accordingly the provisions of section 2(22)(e) cannot be applied in absence ... accumulated profits" 3. Without prejudice to the above grounds, the CIT (A) has erred in confirming addition to the extent of Rs. 17,20,937/- on account of amounts alleged to have been received by the appellant from Muchhala Magic Land Pvt. Ltd. without appreciating the facts that the said

ARUNKUMAR JAYANTILAL MUCHHALA ,MUMBAI vs. DY. COMMISSSIONER OF INCOME TAX , MUMBAI

In the result the appeal filed by the assessee is allowed for statistical purposes

ITA 5399/MUM/2025[2010-11]Status: DisposedITAT Mumbai27 Jan 2026AY 2010-11

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 143(3)Section 2(22)(e)Section 250

deemed dividend u/s. 2(22)(e) of the Act 2. The CIT (A) has failed to appreciate that the payer company does not possess "accumulated profits" at the beginning of the financial year 2005-06 and accordingly the provisions of section 2(22)(e) cannot be applied in absence ... accumulated profits" 3. Without prejudice to the above grounds, the CIT (A) has erred in confirming addition to the extent of Rs. 17,20,937/- on account of amounts alleged to have been received by the appellant from Muchhala Magic Land Pvt. Ltd. without appreciating the facts that the said

ARUNKUMAR JAYANTILAL MUCHHALA ,MUMBAI vs. DY. COMMISSIONER OF INCOME TAX, MUMBAI

In the result the appeal filed by the assessee is allowed for statistical purposes

ITA 5398/MUM/2025[2009-10]Status: DisposedITAT Mumbai27 Jan 2026AY 2009-10

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 143(3)Section 2(22)(e)Section 250

deemed dividend u/s. 2(22)(e) of the Act 2. The CIT (A) has failed to appreciate that the payer company does not possess "accumulated profits" at the beginning of the financial year 2005-06 and accordingly the provisions of section 2(22)(e) cannot be applied in absence ... accumulated profits" 3. Without prejudice to the above grounds, the CIT (A) has erred in confirming addition to the extent of Rs. 17,20,937/- on account of amounts alleged to have been received by the appellant from Muchhala Magic Land Pvt. Ltd. without appreciating the facts that the said

ARUNKUMAR JAYANTILAL MUCHHALA ,MUMBAI vs. DY. COMMISSIONER OF INCOME TAX, MUMBAI

In the result the appeal filed by the assessee is allowed for statistical purposes

ITA 5397/MUM/2025[2008-09]Status: DisposedITAT Mumbai27 Jan 2026AY 2008-09

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 143(3)Section 2(22)(e)Section 250

deemed dividend u/s. 2(22)(e) of the Act 2. The CIT (A) has failed to appreciate that the payer company does not possess "accumulated profits" at the beginning of the financial year 2005-06 and accordingly the provisions of section 2(22)(e) cannot be applied in absence ... accumulated profits" 3. Without prejudice to the above grounds, the CIT (A) has erred in confirming addition to the extent of Rs. 17,20,937/- on account of amounts alleged to have been received by the appellant from Muchhala Magic Land Pvt. Ltd. without appreciating the facts that the said

ARUNKUMAR JAYANTILAL MUCHHALA ,MUMBAI vs. DY. COMMISSIONER OF INCOME TAX , MUMBAI

In the result the appeal filed by the assessee is allowed for statistical purposes

ITA 5396/MUM/2025[2007-08]Status: DisposedITAT Mumbai27 Jan 2026AY 2007-08

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 143(3)Section 2(22)(e)Section 250

deemed dividend u/s. 2(22)(e) of the Act 2. The CIT (A) has failed to appreciate that the payer company does not possess "accumulated profits" at the beginning of the financial year 2005-06 and accordingly the provisions of section 2(22)(e) cannot be applied in absence ... accumulated profits" 3. Without prejudice to the above grounds, the CIT (A) has erred in confirming addition to the extent of Rs. 17,20,937/- on account of amounts alleged to have been received by the appellant from Muchhala Magic Land Pvt. Ltd. without appreciating the facts that the said

ARUNKUMAR JAYANTILAL MUCHHALA ,MUMBAI vs. DY. COMMISSIONER OF INCOME TAX , MUMBAI

In the result the appeal filed by the assessee is allowed for statistical purposes

ITA 5395/MUM/2025[2006-07]Status: DisposedITAT Mumbai27 Jan 2026AY 2006-07

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

Section 143(3)Section 2(22)(e)Section 250

deemed dividend u/s. 2(22)(e) of the Act 2. The CIT (A) has failed to appreciate that the payer company does not possess "accumulated profits" at the beginning of the financial year 2005-06 and accordingly the provisions of section 2(22)(e) cannot be applied in absence ... accumulated profits" 3. Without prejudice to the above grounds, the CIT (A) has erred in confirming addition to the extent of Rs. 17,20,937/- on account of amounts alleged to have been received by the appellant from Muchhala Magic Land Pvt. Ltd. without appreciating the facts that the said

RK INTERIORS CFS (INDIA) PRIVATE LIMITED,HYDERABAD vs. ITO, WARD - 3(1), HYDERABAD

In the result, appeal of the Assessee is allowed

ITA 1865/HYD/2025[2023-24]Status: DisposedITAT Hyderabad09 Jan 2026AY 2023-24

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita No.1865/Hyd/2025 Assessment Year 2023-2024 M/S. Rk Interiors Cfs (India) Private Limited, The Income Tax Officer, Vs. Hyderabad – 500 034. Ward-3(1), Telangana. Hyderabad. Pan Aakcr1592H (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Ca M V Prasad राज" व "ारा /Revenue By: Dr. Narendra Kumar Naik, Cit-Dr सुनवाई की तारीख/Date Of Hearing: 17.12.2025 घोषणा की तारीख/Pronouncement: 09.01.2026 आदेश/Order

For Appellant: CA M V PrasadFor Respondent: Dr. Narendra Kumar Naik, CIT-DR
Section 143(1)Section 194QSection 40Section 68

partnership firm. There is no bar for the partners to withdraw the amount from the partnership firm beyond their share in the profits or accumulated profits in the partnership firm, if the said withdrawal is treated in the books of the partnership firm as loans and advances ... looking at the profit of the partnership firm when there are other sources being loan, sundry creditors, contribution of capital by the partners and accumulated profit. Thus, once the assessee has brought all the details and evidence in the shape of books of accounts of the partnership firm, bank account

ASSISSTANT COMMISSIONER OF INCOME TAX, JHANDEWALAN EXTN. vs. OM PRAKASH ARORA, CONNAUGHT PLACE

In the result, appeal of the Revenue vide ITA No

ITA 5031/DEL/2024[2015-16]Status: DisposedITAT Delhi09 Jan 2026AY 2015-16

Bench: Shri Anubhav Sharma & Shri Amitabh Shukla, Accountnat Member [Assessment Year: 2015-16] Assistant Commissioner Of Om Prakash Arora, Income Tax, Central Circle-01, M-3, Flat No.103, Avg Bhawan E-2, Jhandewalan Extn. Vs The Variety Books Depot. New Delhi-110055 Connaught Place, New Delhi-110001 Pan-Accpa9774F Assessee Revenue Cross Objection No.42/Del/2025 (Arising Out Of Ita No.5031/Del/2024) [Assessment Year: 2015-16] Om Prakash Arora, Assistant Commissioner Of Income M-3, Flat No.103, Avg Tax, Central Circle-01, Bhawan The Variety Books Vs E-2, Jhandewalan Extn. Depot. Connaught Place, New Delhi-110055 New Delhi-110001 Pan-Accpa9774F Assessee Revenue [Assessment Year: 2016-17] Assistant Commissioner Of Om Prakash Arora, Income Tax, Central Circle-01, M-3, Flat No.103, Avg Bhawan E-2, Jhandewalan Extn. Vs The Variety Books Depot. New Delhi-110055 Connaught Place, New Delhi-110001 Pan-Accpa9774F Assessee Revenue

Section 139(1)Section 143(3)Section 147Section 148Section 151

this fact establishes that the assessee had taken loan from the company in which he held 50% equity shares. He observed that the accumulated profits of the company as at 10,36,65,028/- as on 31.03.2014 and Rs. 10,42,26,198/- as on 31.03.2015. After analysing the provision

ASSISSTANT COMMISSIONER OF INCOME TAX, JHANDEWALAN EXTN. vs. OM PRAKASH ARORA, CONNAUGHT PLACE

In the result, appeal of the Revenue vide ITA No

ITA 5029/DEL/2024[2016-17]Status: DisposedITAT Delhi09 Jan 2026AY 2016-17

Bench: Shri Anubhav Sharma & Shri Amitabh Shukla, Accountnat Member [Assessment Year: 2015-16] Assistant Commissioner Of Om Prakash Arora, Income Tax, Central Circle-01, M-3, Flat No.103, Avg Bhawan E-2, Jhandewalan Extn. Vs The Variety Books Depot. New Delhi-110055 Connaught Place, New Delhi-110001 Pan-Accpa9774F Assessee Revenue Cross Objection No.42/Del/2025 (Arising Out Of Ita No.5031/Del/2024) [Assessment Year: 2015-16] Om Prakash Arora, Assistant Commissioner Of Income M-3, Flat No.103, Avg Tax, Central Circle-01, Bhawan The Variety Books Vs E-2, Jhandewalan Extn. Depot. Connaught Place, New Delhi-110055 New Delhi-110001 Pan-Accpa9774F Assessee Revenue [Assessment Year: 2016-17] Assistant Commissioner Of Om Prakash Arora, Income Tax, Central Circle-01, M-3, Flat No.103, Avg Bhawan E-2, Jhandewalan Extn. Vs The Variety Books Depot. New Delhi-110055 Connaught Place, New Delhi-110001 Pan-Accpa9774F Assessee Revenue

Section 139(1)Section 143(3)Section 147Section 148Section 151

this fact establishes that the assessee had taken loan from the company in which he held 50% equity shares. He observed that the accumulated profits of the company as at 10,36,65,028/- as on 31.03.2014 and Rs. 10,42,26,198/- as on 31.03.2015. After analysing the provision

WINDSTON SPRINGS PVT LTD,MUMBAI vs. DY. CIT -8(3)(2), MUMBAI

In the result, the appeal for assessment year 2015-16 is allowed

ITA 704/MUM/2025[2014-15]Status: DisposedITAT Mumbai08 Jan 2026AY 2014-15

Bench: Shri Saktijit Dey & Shri Jagadish

For Appellant: Respondent byFor Respondent: Shri Arun Kanti Datta, CIT D.R
Section 36(1)(iii)Section 50

section 14A. 14. Before us, the Ld. Authorised Representative submitted that the assessee had sufficient interest-free funds comprising share capital, reserves and accumulated profits amounting to Rs. 32.58 crore as against capital contribution to the partnership firm of only Rs. 1.11 crore. It was submitted that no borrowed funds

WINDSTON SPRINGS PVT LTD,MUMBAI vs. DY. CIT -8(3)(2), MUMBAI

In the result, the appeal for assessment year 2015-16 is allowed

ITA 703/MUM/2025[2015-16]Status: DisposedITAT Mumbai08 Jan 2026AY 2015-16

Bench: Shri Saktijit Dey & Shri Jagadish

For Appellant: Respondent byFor Respondent: Shri Arun Kanti Datta, CIT D.R
Section 36(1)(iii)Section 50

section 14A. 14. Before us, the Ld. Authorised Representative submitted that the assessee had sufficient interest-free funds comprising share capital, reserves and accumulated profits amounting to Rs. 32.58 crore as against capital contribution to the partnership firm of only Rs. 1.11 crore. It was submitted that no borrowed funds

MITSUI KINZOKU COMPONENTS PVT LTD,REWARI vs. INCOME TAX OFFICER, ITO WARD TWO

In the result, appeal of the assessee is allowed

ITA 3912/DEL/2024[2013-14]Status: DisposedITAT Delhi31 Dec 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 115Section 143(3)Section 237Section 239

falls outside scope of DTAA as, (a) Dividend is an amount declared, distributed or paid by the Domestic Company out of the current or accumulated profits; (b) Dividend is additional income tax payable over and above the income tax chargeable in respect in total income of such company. BFAR

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