AI Drafter 
TaxTMI 
TaxTMI 
2023 (11) TMI 127
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....rned Senior Standing Counsel waives service of rule on behalf of the respondent. With consent of the learned advocates appearing for the respective parties, the matter is taken up for final hearing today. .2 By way of this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 27.03.2021 issued under section 148 of the Income Tax Act, 1961, and the order disposing of the objections. 3. Facts in brief are as under: 3.1 The petitioner filed return of income for the Assessment Year 2014-15 on 27.11.2014 declaring total income of Rs. 3,44,45,390/-. The return was taken up for scrutiny. Notices under sec. 142(1) was issued on 12.04.2016 and 24.06.2016. The assessment order was passed on 1....
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....reholder, and therefore, there was no questiion of the loan being classified as "Dividend". He would rely on a decision in the case of Commissioner of Income tax v. Daisy Packers (P) Ltd. reported in (2013) 40 taxmann.com 480(Gujarat). He would submit that there was no escapement of income. The petitioner had fully and truly disclosed all material facts. It was the case where for the Assessment Year 2014-15, notice under Sec. 148 was issued on 27.03.2021 after a period of four year, and therefore, not only full disclosure of material facts, but there was true and full disclosure of facts which were examined in detail at the time of scrutiny assessment. 4.4 Mr. Soparkar, learned counsel, would further submit that all the books of accounts....
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....d therefore, an inquiry had to be made so as to come to the conclusion that the amount of loan have to be treated as "deemed dividend". 6. Having considered the submissions made by the learned counsels appearing for the respective parties, perusal of the reasons recorded indicate that the basis and the reasons to believe for the revenue to reopen the assessment would indicate that the reasons to believe were based on "scrutiny of the case records, balance-sheet, Profit & Loss Account and computation of income." In other words, there was no fresh or new tangible material available with the revenue to reopen the assessment. 6.1 What is evident from the records too is that it was clearly pointed out that the assessee company is not a sha....
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....e Amigo Brushes Pvt. Ltd. had a total surplus of Rs. 70 lacs as on 31st March 1999 and it has advanced a loan to the assessee to the tune of Rs. 25 lacs. Whereas the assessee contended that he received deposit from Amigo Brushes Pvt. Ltd. and Daisy Packers Pvt. Ltd. was not a shareholder in Amigo Brushes Pvt. Ltd. The Assessing Officer by his order dated 30th September 2004 rejected the claim of the assessee and treated the deposits as loan and consequently deemed to be a deemed dividend under Section 2(22)(e) of the Act and accordingly computed the tax. The assessee filed appeal which was dismissed by CIT(A) on 11th May 2006. The assessee filed Second Appeal which has been allowed by the Tribunal on 5th June 2009 and the Tribunal has hold ....
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....he case of Commissioner of Income-tax vs. Madhur Housing & Development Co., reported in [2018] 93 taxmann.com 502 (SC)., held as under:- "Section 2(22) of the Income-tax Act, 1961-Deemed dividend - (Applicability of)- High Court relied upon judgment of Delhi High Court in Commissioner of Income-tax v. Aankitech (P) Ltd. [2011] 11 taxmann.com 100 (Delhi) in which it was held that (I) legal fiction created under section 2(22)(e) enlarges definition of dividend only and it cannot be extended further for broadening concept of shareholders, (ii) a concern in which shareholder of payer company has at least 20 per cent of voting power and loan or advance under this category is given admittedly not to a shareholder / memb....