Smt. Priya Arora vs. The ACIT, Central Circle-II, Chandigarh

Parties Involved

Facts Summary

Smt. Priya Arora, the assessee, filed appeals against the orders of the Commissioner of Income Tax (Appeals) for assessment years 2009-10, 2010-11, and 2011-12. The appeals were consolidated and heard together. The main issues involved were the addition of deemed dividends and the disallowance of deductions under section 80C of the Income Tax Act, 1961. The assessee argued that certain amounts credited to her personal bank account should be treated as imprest accounts rather than deemed dividends. The Tribunal considered the submissions and found that the amounts were indeed used for personal payments and thus were correctly treated as deemed dividends. Regarding the deductions under section 80C, the Tribunal allowed the appeals as the assessee was entitled to make fresh claims in the returns filed in response to notices under section 153A/B/C of the Act.…

Legal Issues

• 1. Addition of deemed dividend under section 2(22)(e) of the Income Tax Act, 1961.
• 2. Disallowance of deduction claimed under section 80C.

Judgment Outcome

Decided in favour of Partly Assessee.

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