Arunkumar Jayantilal Muchhla vs DCIT

Parties Involved

Facts Summary

The present appeals have been filed by the assessee, Arunkumar Jayantilal Muchhla, challenging the different impugned orders dated 13.06.2025 passed under section 250 of the Income Tax Act, 1961, by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment years 2006-07 to 2012-13. The assessee raised several grounds of appeal, primarily concerning the addition of Rs. 39,75,937/- on account of deemed dividend under section 2(22)(e) of the Act. The assessee argued that the payer company did not possess 'accumulated profits' and that certain amounts were wrongly added as deemed dividend. The case involved multiple rounds of litigation, with previous orders being set aside and the matter being remanded for fresh adjudication.…

Legal Issues

• 1. Erroneous addition of Rs. 39,75,937/- on account of deemed dividend u/s. 2(22)(e) of the Act
• 2. Failure to appreciate lack of 'accumulated profits' at the beginning of FY 2005-06
• 3. Erroneous addition of Rs. 17,20,937/- on account of current account transactions and Director's Remuneration
• 4. Erroneous addition of Rs. 22,55,000/- on account of amounts received by M/s. Shiv Sai Developers

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Atul Bansal vs. ACIT, Central Circle 16 & ACIT, Central Circle 16 vs. Atul Bansal

  Delhi Bench benchAY 2013-14Partly Allowed

• Sahara India Limited v. ACIT, Central Circle-I, Lucknow

  Delhi Bench benchAY 1996-97, 1997-98, 1998-99, 2000-01, 2001-02, 2003-04Partly Allowed

• M/s Merino Industries Ltd vs DCIT, Circle-12(1), Kolkata

  Kolkata Bench benchAY 2014-15Partly Allowed

• TAJMEET KAUR VS. ITO, WARD 29(7) DELHI

  DELHI BENCH benchAY 2012-13Allowed

• Alcom Investment Pvt. Ltd. vs. ITO, Ward-12(1), Kolkata

  Kolkata Bench benchAY 2017-18Allowed

• CHETNA SUNDARAM VS. DCIT, CIRCLE 70(1), NEW DELHI

  Delhi Bench benchAY 2012-13Allowed