Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
ITAT allowed the assessee's appeal, rejecting the Assessing Officer's claim of deemed dividend under Section 2(22)(e). The tribunal found no evidence of personal use of company funds, noting the cash seized belonged to the company and was held in a fiduciary capacity. The board resolution supporting the assessee's role as custodian was deemed relevant, and the land purchase was proven to be made through banking channels, not company cash. Consequently, the conditions for invoking Section 2(22)(e) were not satisfied, thereby dismissing the deemed dividend assessment.
ITAT allowed the assessee's appeal, rejecting the Assessing Officer's claim of deemed dividend under Section 2(22)(e). The tribunal found no evidence of personal use of company funds, noting the cash seized belonged to the company and was held in a fiduciary capacity. The board resolution supporting the assessee's role as custodian was deemed relevant, and the land purchase was proven to be made through banking channels, not company cash. Consequently, the conditions for invoking Section 2(22)(e) were not satisfied, thereby dismissing the deemed dividend assessment.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4915 
