JHV Construction Co. Pvt. Ltd. Vs. D.C.I.T., CC-2(2), Kolkata

Parties Involved

Facts Summary

The assessee, JHV Construction Co. Pvt. Ltd., filed its original return of income for AY 2014-15 on 31.12.2014 showing ‘NIL’ income. The assessment u/s 143(3) of the Act was completed on 17.12.2016 at ‘NIL’ income. Subsequently, a search and seizure action u/s 132 of the Act on 08.10.2018 led to an assessment order u/s 153A of the Act dated 21.07.2021, which added a sum of ₹39,59,000/- to the total income. The assessee received a loan of ₹72,78,469/- from Welcome Distilleries Pvt. Ltd., where Shri Heera Lal Jaiswal held substantial shares in both entities. The Pr. Commissioner of Income Tax (Central), Kolkata-1, held that the loan should be treated as deemed dividend u/s 2(22)(e) of the Income Tax Act, 1961.…

Legal Issues

• 1. Whether the order dated 27.03.2024 under section 263 of the Income Tax Act, 1961 passed by the Ld. PCIT is bad in law and needs to be quashed.
• 2. Whether the Ld. PCIT erred in passing order u/s. 263 of the Income Tax Act, 1961 setting aside the order dated 21.07.2021 passed u/s. 153A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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