ITA No 319 of 2022 and SA No.2 of 2024 Ishoo Narang

Parties Involved

Facts Summary

The assessee, Ishoo Narang, filed an appeal against the order of the Commissioner of Income Tax (Appeals) dated 23/06/2022, which upheld the assessment order of the Assessing Officer. The assessee, who is the director of two companies, M/s. Kyori Infrastructure Pvt Ltd (KIPL) and M/s. Kyori Oremin Ltd (KOL), challenged the computation of capital gains from the conversion of capital assets into stock-in-trade and the addition of deemed dividend under section 2(22)(e) of the Income Tax Act, 1961. The assessee argued that the capital asset was converted into stock-in-trade in the financial year 2013-14 and that the transaction between the two companies was an inter-corporate deposit, not a loan. The Commissioner of Income Tax (Appeals) upheld the Assessing Officer's order, leading to the present appeal before the Tribunal.…

Legal Issues

• 1. The assessee's contention that the capital asset was converted into stock-in-trade in the financial year 2013-14 and not in 2014-15.
• 2. The addition of deemed dividend under section 2(22)(e) of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

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