2023 (1) TMI 780

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....cate Respondent : Mr. Radheshyam Chimanka, Senior Standing Counsel for the Revenue Department ORDER 1. The present appeal by the Assessee is directed against an order dated 10th October, 2017 passed by the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (ITAT) in ITA No.52/CTK/2016 for the Assessment Year (AY) 2011-12. 2. While admitting the present appeal on 27th July 2022, the ....

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....f the shares of the Firm. There are three other partners as well. 5. Mr. Mishra also happens to be the Director of M/s. Orissa Stevedores Ltd. (OSL) and in OSL, he holds 36.95% shares. 6. During the AY in question, OSL gave a unsecured loan of Rs.3,75,78,685/- to the Firm i.e. M/s. Mahimananda Mishra. Of this, Rs.1,74,04,185/- was received as cash. The Assessing Officer (AO) proceeded to tre....

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....company or otherwise) made after the 31st day of May, 1987, by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner and ....

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.... deemed dividend u/s.2(22)(e) of the Act in the hands of Shri Mahimananda Mishra as discussed above. The AO is directed to take remedial measures accordingly." 10. The ITAT in the impugned order has, in the considered view of this Court, needlessly remanded the matter to the CIT (A) on the ground that it was not clear whether deemed dividend should be taxed in the hands of Assessee's partner or....