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| The Tax Publishers2021 TaxPub(DT) 3518 (Jp-Trib) INCOME TAX ACT, 1961
Section 2(22)(e)
Mrs. Manju Gupta hold substantial interest in M/s Skyways Industrial Estate, and addition has already been made in her case. Assessee itself was not a shareholder in the company, the addition cannot be made in the hands of the assessee company. There were inter-corporate current account business transactions between Skyways Industrial Estate (P) Ltd. and assessee company. The amounts were received by assessee company for business consideration and, therefore, no addition could be made under section 2(22)(e).
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Dividend - Deemed dividend under section 2(22)(e) - Assessee not a shareholder -
Mrs. Manju Gupta was holding substantial interest in Skyways Industrial Estate Co. Pvt. Ltd. was also a majority stakeholder in assessee company. AO taxed amount of Rs. 58 lakhs received by assessee from M/s. Skyways Industrial Estate (P) Ltd. as deemed dividend under section 2(22)(e). Held: Mrs. Manju Gupta holds substantial interest in M/s Skyways Industrial Estate, and addition has already been made in her case. Assessee itself is not a shareholder in the company, the addition cannot be made in the hands of the assessee company. There were inter-corporate current account business transactions between Skyways Industrial Estate (P) Ltd. and assessee company. The amounts were received by assessee company for business consideration and, therefore, no addition could be made under section 2(22)(e).
Relied:Hotel Hilltop ITA 5 of 2005 and Exotica & Infrastructure Company Pvt. Ltd. ITA No. 5188/Del/2019 (decided on 24.06.2020) : 2020 TaxPub(DT) 2602 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16 & 2014-15
INCOME TAX ACT, 1961
Section 40A(3)
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