MSN LIFE SCIENCES PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

In the result, the appeal of assessee in ITA No

68,051\nBalance excess payments treated as “advance or loan” constituting deemed dividend | 241,53,50,035 | 1,53,47,177\nAggregate deemed dividend for AY 2019-20 | 243,06,97,212 | \n\nParticulars | A/c of MSN Laboratories Pvt Ltd in the\n===\nbooks of the appellant.\nAmount in (Rs.)\nOpening debit balance | 299,95,35,547\nAdd: Sales

MSN LIFE SCIENCES PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

68,051 |\n| Balance excess payments treated as “advance or loan” constituting deemed dividend | 241,53,50,035 | 1,53,47,177 |\n| Aggregate deemed dividend for AY 2019-20 | 243,06,97,212 | |\n| Particulars | A/c of MSN Laboratories Pvt Ltd in the books of the appellant. Amount in (Rs.) |\n|---|---|\n| Opening debit balance

ACIT., CENTRAL CIRCLE-2(4), , HYDERABAD vs. M/S. MAITHRI LABORATORIES PRIVATE LIMITED, HYDERABAD

In the result, both the appeals of assessee and the Revenue\nare partly allowed

68,051\npurchases in addition to 100%\nof purchases considered above\nBalance excess payments\ntreated as “advance or loan\"\nconstituting deemed\ndividend\nAggregate deemed dividend\nfor AY 2019-20\n241,53,50,035\n243,06,97,212\n1,53,47,177\n\n16. The AO observed that the appellant company, being the payer\ncompany, is liable to pay dividend distribution

ACIT., CENTRAL CIRCLE-2(4), HYDERABAD vs. MSN PHARMACHEM PVT. LTD., HYDERABAD

In the result, the appeal of assessee in ITA No

Deemed. Dividend.\n5. The Ld.CIT(A) erred in appreciating the fact that the outstanding\nde debit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact\nloan/advance which attracts the provisions of section 2(22)(e) of the\nAct.\"\n3. The brief facts of the case are that the appellant company is\nengaged in the business of manufacturing of bulk

MSN LIFE SCIENCES PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

In the result, the appeal of assessee in ITA No

Deemed. Dividend.\n5. The Ld.CIT(A) erred in appreciating the fact that the outstanding\ndebit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact\nloan/advance which attracts the provisions of section 2(22)(e) of the\nAct.\"\n3. The brief facts of the case are that the appellant company is\nengaged in the business of manufacturing of bulk drugs

MSN LIFE SCIENCES PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

In the result, the appeal of assessee in ITA No

Deemed. Dividend.\n5. The Ld.CIT(A) erred in appreciating the fact that the outstanding\ndebit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact\nloan/advance which attracts the provisions of section 2(22)(e) of the\nAct.\"\n3. The brief facts of the case are that the appellant company is\nengaged in the business of manufacturing of bulk drugs

MAITHRI LABORATORIES PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

68,051\npurchases in addition to 100%\nof purchases considered above\nBalance excess payments\ntreated as “advance or loan\"\nconstituting deemed\ndividend\nAggregate deemed dividend\nfor AY 2019-20\n241,53,50,035\n243,06,97,212\n1,53,47,177\nParticulars\nA/c of MSN Laboratories Pvt Ltd in the\nbooks of the appellant.\nAmount in (Rs.)\n299

ACIT., CENTRAL CIRCLE-2(4), HYDERABAD vs. M/S. MSN LIFE SCIENCES PVT. LTD., HYDERABAD

Deemed. Dividend.\n5. The Ld.CIT(A) erred in appreciating the fact that the outstanding\nde'bit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact\nloan/advance which attracts the provisions of section 2(22)(e) of the\nAct.\"\n\n3.\nThe brief facts of the case are that the appellant company is\nengaged in the business of manufacturing

MSN PHARMACHEM PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

Appeal are dismissed

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

68,051 purchases in addition to 100% treated as “advance or loan” constituting deemed dividend Aggregate deemed dividend 243,06,97,212 for AY 2019-20 Particulars A/c of MSN Laboratories Pvt Ltd in the books of the appellant. Amount in (Rs.) Opening debit balance 299,95,35,547 Add: Sales 100,43,24,928 Add: Payments (net of rent

MSN PHARMACHEM PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

Appeal are dismissed

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

68,051 purchases in addition to 100% treated as “advance or loan” constituting deemed dividend Aggregate deemed dividend 243,06,97,212 for AY 2019-20 Particulars A/c of MSN Laboratories Pvt Ltd in the books of the appellant. Amount in (Rs.) Opening debit balance 299,95,35,547 Add: Sales 100,43,24,928 Add: Payments (net of rent

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

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

68,051 addition to 100% of purchases considered above Balance excess payments 241,53,50,035 1,53,47,177 treated as “advance or loan” constituting deemed dividend Aggregate deemed dividend for 243,06,97,212 AY 2019-20 45 ITA.Nos.382 & 472/Hyd./2025 Particulars A/c of MSN Laboratories Pvt Ltd in the books of the appellant. Amount

ACIT., CENTRAL CIRCLE-2(4), HYDERABAD vs. SATYANARAYANA REDDY MANNE, HYDREABAD

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

section\n2(22)(e) and keeping in view the flexibility required in practical\nbusiness situations, the AO treated the payments made by the\nappellant company to the extent of 150% of the purchases made\nfrom the recipient companies as the payments made in the\nordinary course of business and the payments made in excess of\nsuch 150% of the purchases

MSN PHARMACHEM PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

deemed dividend u/s 2(22)(e)\nin the hands of Sri. M.S.N.Reddy, who is the common substantial\nshareholder in the appellant company and the recipient companies.\nThe deemed dividend worked out by the AO amounted to\nRs.241,53,50,035/- in the case of payments made to MSN\nLaboratories Pvt Ltd and Rs.1,53,47,177/- in the case

MSN PHARMACHEM PRIVATE LIMITED,HYDERABAD vs. ACIT., CENTRAL CIRCLE-2(4), HYDERABAD

Deemed Dividend.\n5. The Ld.CIT(A) erred in appreciating the fact that the outstanding\ndebit balance of M/s. MSN Laboratories Pvt. Ltd. is in fact\nloan/advance which attracts the provisions of Section 2(22)(e) of the\nAct.\"\n3. The brief facts of the case are that the appellant company is\nengaged in the business of manufacturing of drugs

AGARWAL SPONGE & ENERGY PRIVATE LIMITED,HYDERABAD vs. INCOME TAX OFFICER, WARD-1(1), HYDERABAD

In the result, the appeal of the assessee is allowed

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

section 2(22)(e), an amount of Rs. ITA No.1110/Hyd/2018 3 16,68,33,979/- is treated as deemed dividend

ACIT., CIRCLE-5(1), HYDERABAD vs. PENNA CEMENT INDUSTRIES LIMITED, HYDERABAD

deemed to be an expenditure incurred for the purpose of business. 11. It is, therefore, clear that the question that is relevant to be answered on this issue is whether the donations given for compliance with the provisions under section 135 of the Companies Act, to the institutions mentioned in section 80G(2) of the Act are qualified for deduction

RAVINDER RAO TAKKALLAPELLY,HYDERABAD vs. DCIT., CIRCLE-1, KARIMNAGAR

In the result, the appeal is allowed for statistical purposes

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdia

Section 2(22)(e) without correctly appreciating the factual and legal position. The AO failed to distinguish between transactions of business nature and those intended to be covered under the ambit of deemed dividend. Improper Calculation of Deemed Dividend: The calculation of deemed dividend by attributing accumulated profits of Rs.55,37,703 to the shareholder's shareholding percentage was done

ACIT., CIRCLE-5(1), HYDERABAD vs. PENNA CEMENT INDUSTRIES LIMITED, HYDERABAD

deem it apposite to cull out the observations recorded by the\nTribunal in the case of Optum Global Solutions (India) Private Limited\nVs DCIT(supra), as under:\n\"10. We have gone through the record in the light of the submissions\nmade on either side. Insofar as the payments made to the PM Relief\nFund and to the institutions enumerated