2026 (5) TMI 1278

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.... the appeal filed by the assessee against the assessment order passed u/s. 143(3) of the Income Tax Act, 1961 [the Act] by the ACIT, CC 1(2), Bengaluru [ld. AO] was dismissed. 2. The only dispute in this appeal is the addition of difference in cash book and physical cash found during search in case of a company where assessee is a substantial shareholder holding more than 10 % of share capital chargeable to tax in the hands of the assessee u/s. 2(22)(e) of the Act as deemed dividend as assessee stated to have withdrawn the differential cash. 3. The brief facts of the case show that search & seizure u/s. 132 of the Act was carried out in the case of assessee on 4.1.2018. The assessee filed return of income u/s. 139(1) of the Act at a t....

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....e of proprietary concern of the assessee is not certain. According to him, the shortage was found in the books of account of the proprietary concern of the assessee and therefore there is no applicability of provisions of section 2(22)(e) of the Act. 9. The ld. DR furnished a report dated 12.3.2025 and submitted that the shortage of cash was found in the books of company only where the assessee is a shareholder. However, he wanted to confirm the same. 10. We have carefully considered the rival contentions and perused the orders of the ld. lower authorities. If the shortage of cash found during the search proceedings as per the claim of the ld. AR, such shortage was found in the books of the proprietary concern of the assessee, and not....