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

In the result, all the appeals filed by the Revenue are dismissed

Bench: Shri V. Durga Rao & Shri Manjunatha, G.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., Plot No. 198, 13Th Cross Street, Sri Sai Income Tax, Central Circle 2(2), Vs. Investigation Building, Nagar, Okkiam Thoraipakkam, 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 Thoraipakkam, Vs. Chennai 34. Chennai 600 097. [Pan:Aaecv8582B] (अपीलाथ"/Appellant) (""थ"/Respondent)

section 2(22)(e) of the Act, alternatively held that the provisions of deemed dividend cannot be invoked in the hands of the assessee companies since the assessee companies are not the shareholders of M/s. IG3 Infra Limited. It is submitted that the Ld. CIT(A) has taken this view relying on the following judicial precedents: • CIT v. Universal Medicare

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

In the result, all the appeals filed by the Revenue are dismissed

Bench: Shri V. Durga Rao & Shri Manjunatha, G.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., Plot No. 198, 13Th Cross Street, Sri Sai Income Tax, Central Circle 2(2), Vs. Investigation Building, Nagar, Okkiam Thoraipakkam, 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 Thoraipakkam, Vs. Chennai 34. Chennai 600 097. [Pan:Aaecv8582B] (अपीलाथ"/Appellant) (""थ"/Respondent)

section 2(22)(e) of the Act, alternatively held that the provisions of deemed dividend cannot be invoked in the hands of the assessee companies since the assessee companies are not the shareholders of M/s. IG3 Infra Limited. It is submitted that the Ld. CIT(A) has taken this view relying on the following judicial precedents: • CIT v. Universal Medicare

DCIT, CENTRAL CIRCLE-2(2), CHENNAI vs. M/S.MAC QUALITY BUILDERS PVT LIT., CHENNAI

In the result, all the appeals filed by the Revenue are dismissed

Bench: Shri V. Durga Rao & Shri Manjunatha, G.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., Plot No. 198, 13Th Cross Street, Sri Sai Income Tax, Central Circle 2(2), Vs. Investigation Building, Nagar, Okkiam Thoraipakkam, 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 Thoraipakkam, Vs. Chennai 34. Chennai 600 097. [Pan:Aaecv8582B] (अपीलाथ"/Appellant) (""थ"/Respondent)

section 2(22)(e) of the Act, alternatively held that the provisions of deemed dividend cannot be invoked in the hands of the assessee companies since the assessee companies are not the shareholders of M/s. IG3 Infra Limited. It is submitted that the Ld. CIT(A) has taken this view relying on the following judicial precedents: • CIT v. Universal Medicare

DCIT, CENTRAL CIRCLE-2(2), CHENNAI vs. M/S. MEADOW INFRASTRUCTURE PVT LIT., CHENNAI

In the result, all the appeals filed by the Revenue are dismissed

Bench: Shri V. Durga Rao & Shri Manjunatha, G.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., Plot No. 198, 13Th Cross Street, Sri Sai Income Tax, Central Circle 2(2), Vs. Investigation Building, Nagar, Okkiam Thoraipakkam, 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 Thoraipakkam, Vs. Chennai 34. Chennai 600 097. [Pan:Aaecv8582B] (अपीलाथ"/Appellant) (""थ"/Respondent)

section 2(22)(e) of the Act, alternatively held that the provisions of deemed dividend cannot be invoked in the hands of the assessee companies since the assessee companies are not the shareholders of M/s. IG3 Infra Limited. It is submitted that the Ld. CIT(A) has taken this view relying on the following judicial precedents: • CIT v. Universal Medicare

M.KIRAN KUMAR,CHENNAI vs. ACIT CENTRAL CIRCLE-1(4), CHENNAI

In the result, appeal filed by the assessee is partly allowed

Bench: Shri V. Durga Rao & Shri G. Manjunatha

deemed dividend in the hands of the appellant u/s.2(22)(e). 13.The Commissioner of Income Tax (Appeals) has erred in upholding, the addition made by the Assessing Officer in adding the long term capital gains of Rs.16,24,68,072/- disallowing the exempt u/s.10(38) as undisclosed income from other sources. 14.The Commissioner of Income Tax (Appeals) has erred

M/S AADHI ENTERPRISES PRIVATE LIMITED,CHENNAI vs. ACIT, CENTRAL CIRCLE-3(1), CHENNAI

In the result, the appeal filed by the assessee is allowed

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.: 308/Chny/2023 िनधा"रण वष"/Assessment Year: 2016-17 Aadhi Enterprises Pvt. Ltd., The Acit, No.1-130, Perambur Barracks V. Central Circle-3(1), Road, Pattalam, Chennai. Chennai – 600 112. Pan: Aanca 0382P (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri B. Ramakrishnan, Fca Shri S. Neelakantan, Fca Shri Shrenik Chordia, Ca ""यथ" क" ओर से/Respondent By : Shri S. Senthil Kumaran, Cit सुनवाई क" तारीख/Date Of Hearing : 11.07.2023 घोषणा क" तारीख/Date Of Pronouncement : 23.08.2023

Section 68 of the Income-tax Act states that "Where any sum is found credited in the books of the assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), CHENNAI, CHENNAI vs. KISHORE KUMAR JAIN, CHENNAI

In the result the three appeals filed by the revenue are dismissed

sections": [ "2(22)(e)", "153A", "143(3)", "250", "245D(1)", "245D(2C)", "245D(4)", "68", "41(2)", "143(2)", "142(1)" ], "issues": "Whether payments made from undisclosed income for commercial property purchases by a company, benefiting the company, constitute deemed dividend

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), CHENNAI, CHENNAI vs. KISHORE KUMAR JAIN, CHENNAI

In the result the three appeals filed by the revenue are dismissed

sections": [ "2(22)(e)", "153A", "143(3)", "142(1)", "250", "68", "143(3) r.w.s.153A", "245D(1)", "245D(2C)", "245D(4)" ], "issues": "Whether the payments made for the purchase of properties from the company's undisclosed income, used for the company's commercial purposes, constitute 'deemed dividend

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), CHENNAI, CHENNAI vs. KISHORE KUMAR JAIN, CHENNAI

In the result the three appeals filed by the revenue are dismissed

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.: 2847, 2848 & 2849 /Chny/2024 िनधा"रण वष" / Assessment Years: 2012-13, 2013-14 & 2016-17 Assistant Commissioner Of Kishore Kumar Jain, Income Tax, Vs. 62, Bvk Sampath Road, Central Circle -2 (2), Vepery, Chennai. Chennai – 600 007. [Pan: Aahpj-0401-H] (अपीलाथ"/Appellant) (""थ"/Respondent)

68 and amounts to Rs. 55,50,000. Evidently, the said addition does not represent any commercial profits. Therefore, having regard to the parity of reasoning enunciated by the apex Court, as discussed above, we do not find any justifiable reason to hold, in the instant case, that the undisclosed income assessed by the AO in an order under Section

REJI ABRAHAM,CHENNAI vs. DCIT CORPORATE CIRCLE 1(1), CHENNAI

In the result the appeal of the Revenue and the appeals of the assessee are dismissed

Bench: Shri N.R.S. Ganesan & Shri A.Mohan Alankamony

deemed dividend Rs.1.40 crores invoking the provisions of Section 2(22)(e) of the Act. 5. Assessee’s Appeal in the case of Mr. Reji Abraham for the Assessment year 2014-15: The lone issue raised by the assessee in his appeal is that the Ld.CIT(A) has erred in sustaining the order of the Ld.AO who had made addition

DCIT CORPORATE CIRCLE 1 (1), CHENNAI vs. M/S ABAN VENTURES PVT LTD, CHENNAI

In the result the appeal of the Revenue and the appeals of the assessee are dismissed

Bench: Shri N.R.S. Ganesan & Shri A.Mohan Alankamony

deemed dividend Rs.1.40 crores invoking the provisions of Section 2(22)(e) of the Act. 5. Assessee’s Appeal in the case of Mr. Reji Abraham for the Assessment year 2014-15: The lone issue raised by the assessee in his appeal is that the Ld.CIT(A) has erred in sustaining the order of the Ld.AO who had made addition

COGNIZANT TECHNOLOGY SOLUTIONS INDIA PRIVATE LTD.,CHENNAI vs. ACIT, LARGE TAXPAYER UNIT-1, CHENNAI

Bench: Shri Mahavir Singh, Hon’Ble & Shrimanjunatha.G, Hon’Bleआयकरअपीलसं./Ita No.269/Chny/2022 िनधा"रणवष"/Assessment Year: 2017-18 V. M/S.Cognizant Technology- The Asst. Commissioner- Solutions India Pvt. Ltd., Of Income Tax, 5/535, Okkiam, Thoriapakkam, Large Taxpayer Unit-1, Old Mahabalipuram Road, Chennai. Chennai-600 096. [Pan:Aaacd 3312 M] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri Ajay Vohra, Sr.Counsel For Shri N.V. Balaji, Adv. ""यथ" क" ओर से /Respondent By : Shri R.Shankaranarayanan, Additional Solicitor – General Of India For Shri A.P.Srinivas, Sr. Standing Counsel : सुनवाईक"तारीख/Date Of Hearing 03.07.2023 घोषणाक"तारीख /Date Of Pronouncement : 13.09.2023

deemed to be dividend u/s 2(22)(d). Meaning has to be taken specifically from section 2(22ld) when there is capital reduction. 'Purchase of own shares' from shareholders involved 'capital reduction' accompanied by payment from accumulated profits to the shareholders and hence, section 2(22)(d) applies. In such cases, the payment cannot be considered as consideration for purchase

DCIT, CHENNAI vs. P.SRINIVASA GOPAL, CHENNAI

In the result the appeal of the Revenue is dismissed and the cross objection of the assessee is partly allowed

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

Section 2(22)(a) of the Act cannot be attracted. 5.2 After considering the above submission of the assessee and analyzing the facts of the case, the Ld.CIT(A) directed the Ld.AO to delete the addition made on account of deemed dividend amounting to Rs.4,38,31,134/- in the hands of the assessee by observing as under” “I have

ITO, CHENNAI vs. EVERSHINE TIMBER INTERNATIONAL P LTD., CHENNAI

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraआयकर अपील सं./Ita Nos.2138 & 2139/Mds/2014 "नधा"रण वष" / Assessment Years : 2006-07 & 2008-09 The Income Tax Officer, M/S Evershine Timber Company Ward – Ii(1), V. International Ltd., Chennai - 600 034. No.54, Ramasamy Street, West Tambaram, Chennai - 600 045. Pan : Aabce 4201 H (अपीलाथ"/Appellant) (""यथ"/Respondent)

section 2(22)(e) of the Act, any amount received by way of loans / advances during the year, is to be considered as deemed dividends. In the instant case, the amounts received from M/s.. Evershine Wood Packaging Ltd are not pure loans or advances. They are received during the course of regular business sanctions of supplying timber

ITO, CHENNAI vs. EVERSHINE TIMBER INTERNATIONAL P LTD., CHENNAI

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraआयकर अपील सं./Ita Nos.2138 & 2139/Mds/2014 "नधा"रण वष" / Assessment Years : 2006-07 & 2008-09 The Income Tax Officer, M/S Evershine Timber Company Ward – Ii(1), V. International Ltd., Chennai - 600 034. No.54, Ramasamy Street, West Tambaram, Chennai - 600 045. Pan : Aabce 4201 H (अपीलाथ"/Appellant) (""यथ"/Respondent)

section 2(22)(e) of the Act, any amount received by way of loans / advances during the year, is to be considered as deemed dividends. In the instant case, the amounts received from M/s.. Evershine Wood Packaging Ltd are not pure loans or advances. They are received during the course of regular business sanctions of supplying timber

ACIT CC-3(2) , CHENNAI vs. SURYADEV ALLOYS & POWER P LTD , CHENNAI

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1982, 1746, 1747, 1748, 1749, 1750 & 1751/Chny/2017 िनधा"रण वष" / Assessment Years: 2013-14, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 The Acit, M/S. Suryadev Alloys & Central Circle – 3(2), Power Pvt. Ltd., V. Chennai – 600 034. No.497 & 498, Isana Building, 8Th Floor, Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.:1788/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Suryadev Alloys & Power The Acit, Pvt. Ltd., Central Circle – 3(2), V. No.497 & 498, Isana Building, Chennai – 600 034. 8Th Floor,Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) &

dividend / interest to the said investor companies. The profit motive, normally present in any investment company / investor is clearly absent in these cases. l. On a closer look into the surrounding circumstances of this case, it is appropriate to mention that the reality of the transactions do not seem credible and the test of human 16 I.T.A. Nos.1744

ACIT CC-3(2) , CHENNAI vs. SURYADEV ALLOYS & POWER P LTD , CHENNAI

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1982, 1746, 1747, 1748, 1749, 1750 & 1751/Chny/2017 िनधा"रण वष" / Assessment Years: 2013-14, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 The Acit, M/S. Suryadev Alloys & Central Circle – 3(2), Power Pvt. Ltd., V. Chennai – 600 034. No.497 & 498, Isana Building, 8Th Floor, Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.:1788/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Suryadev Alloys & Power The Acit, Pvt. Ltd., Central Circle – 3(2), V. No.497 & 498, Isana Building, Chennai – 600 034. 8Th Floor,Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) &

dividend / interest to the said investor companies. The profit motive, normally present in any investment company / investor is clearly absent in these cases. l. On a closer look into the surrounding circumstances of this case, it is appropriate to mention that the reality of the transactions do not seem credible and the test of human 16 I.T.A. Nos.1744

ACIT CC-3(2) , CHENNAI vs. SURYADEV ALLOYS & POWER P LTD , CHENNAI

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1982, 1746, 1747, 1748, 1749, 1750 & 1751/Chny/2017 िनधा"रण वष" / Assessment Years: 2013-14, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 The Acit, M/S. Suryadev Alloys & Central Circle – 3(2), Power Pvt. Ltd., V. Chennai – 600 034. No.497 & 498, Isana Building, 8Th Floor, Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.:1788/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Suryadev Alloys & Power The Acit, Pvt. Ltd., Central Circle – 3(2), V. No.497 & 498, Isana Building, Chennai – 600 034. 8Th Floor,Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) &

dividend / interest to the said investor companies. The profit motive, normally present in any investment company / investor is clearly absent in these cases. l. On a closer look into the surrounding circumstances of this case, it is appropriate to mention that the reality of the transactions do not seem credible and the test of human 16 I.T.A. Nos.1744

ACIT CC-3(2) , CHENNAI vs. SURYADEV ALLOYS & POWER P LTD , CHENNAI

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1982, 1746, 1747, 1748, 1749, 1750 & 1751/Chny/2017 िनधा"रण वष" / Assessment Years: 2013-14, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 The Acit, M/S. Suryadev Alloys & Central Circle – 3(2), Power Pvt. Ltd., V. Chennai – 600 034. No.497 & 498, Isana Building, 8Th Floor, Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.:1788/Chny/2017 िनधा"रण वष" / Assessment Year: 2013-14 M/S. Suryadev Alloys & Power The Acit, Pvt. Ltd., Central Circle – 3(2), V. No.497 & 498, Isana Building, Chennai – 600 034. 8Th Floor,Poonamallee High Road, Arumbakkam, Chennai – 600 106. Pan: Aakcs 1246B (अपीलाथ"/Appellant) (""यथ"/Respondent) &

dividend / interest to the said investor companies. The profit motive, normally present in any investment company / investor is clearly absent in these cases. l. On a closer look into the surrounding circumstances of this case, it is appropriate to mention that the reality of the transactions do not seem credible and the test of human 16 I.T.A. Nos.1744