Assessee received a refundable rental security deposit from the tenant in respect of the property actually let out. The Assessing Officer assessed the deposit as a deemed dividend. CIT(A) affirmed the addition. On appeal, the Tribunal held that such a deposit cannot be treated as a deemed dividend. Matter was remanded to the Assessing Officer. (AY. 2012-13 to 2017-18)
Asha Burman. v. ACIT (2025) 215 ITD 612 (Delhi) (Trib.)
S. 2(22)(e): Deemed dividend-Refundable rental security deposit from tenant-Cannot be assessed as deemed dividend-Matter remanded.
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