ITA No. 244/Coch/2024

Parties Involved

Facts Summary

The case involves an appeal by N.K. Mohammed Ali and Bros against the National Faceless Appeal Centre, Delhi's order dated 07.02.2024 in proceedings under section 250 of the Income Tax Act, 1961. The assessee firm had received advances/loans from certain companies, and the Assessing Officer made an addition of deemed dividend under section 2(22)(e) of the Act. The CIT(A) confirmed the addition, but the ITAT set aside the order and remanded the matter to the Assessing Officer to verify whether the shares in the companies were held by the partners in their individual capacities or on behalf of the firm. The Assessing Officer upheld the original assessment order, leading to the current appeal.…

Legal Issues

• 1. Whether the addition of deemed dividend can be made in the hands of the assessee firm.
• 2. Whether the CIT(A) erred in deleting the deemed dividend addition.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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