Johar Hasan Zojwalla v/s ACIT, Circle-3

Parties Involved

Facts Summary

The assessee, Johar Hasan Zojwalla, is an individual in the business of builders and developers. For the assessment year 2009-10, the assessee originally filed a return of income on 30/09/2009, declaring a total income of ₹ 36,55,460. The return was selected for scrutiny, and the total income was assessed at ₹ 48,81,660 on 29/12/2011 under section 143(3) of the Income Tax Act, 1961. Subsequently, reassessment proceedings were initiated under section 147 of the Act on 31/03/2016, based on the receipt of unsecured loans from M/s Zojwalla Housing and Properties Private Ltd. The Assessing Officer treated the amount of ₹ 29,76,508 as deemed dividend under section 2(22)(e) and added it to the assessee's total income. The assessee challenged this order, leading to the present appeal.…

Legal Issues

• 1. Validity of the reassessment proceedings under section 147 of the Income Tax Act, 1961.
• 2. Whether the amount received by the assessee from M/s Zojwalla Housing and Properties Private Ltd. falls under the ambit of deemed dividend.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

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

  Kolkata Bench benchAY 2014-15Partly Allowed

• Jagmohan Singh Bedi Vs. ITO, Ward- 70(1)

  Delhi Bench benchAY 2015-16 to 2017-18Partly Allowed

• Root Developers Private Limited vs DCIT, Circle-3

  Delhi Bench benchAY 2010-11, 2011-12, 2013-14, 2014-15Allowed

• Samtel India Limited vs. Asst. CIT

  Delhi Bench ‘G’ benchAY 2007-08Allowed

• Manohar Manak Alloys Private Limited v/s DCIT, Circle 4(2)(2)

  Mumbai bench

• M/s Muse Advertising And Media Private Limited vs. The Income Tax Officer, Ward-10(3), Kolkata

  Kolkata Bench benchAY 2011-12Allowed