Investments have been made by petitioner in shares of M/s. Poona Galvanizers Pvt. Ltd., (PGPL) and shares of M/s. Karamtara Fasteners Pvt. Ltd. (KFPL). DCIT Mumbai after raising a query on the share holding pattern of PGPL and KFPL from whom PGPL had taken loan; passed the assessment order taxing a sum of Rs.1,07,33,270/-as deemed dividend under Section 2(22)(e) of the Act. PGPL challenged this order before CIT (A)). The CIT (A) held that amount of Rs.1,07,33,270/-should have been brought to tax as deemed dividend under Section 2(22)(e) of the Act in the hands of petitioner who is having substantial interest and not PGPL and KFPL. Order was up held by the Appellate Tribunal even before the reasons for re-opening were recorded and even after the reasons was recorded and notice was issued to petitioner. On writ High Court quashed and and set aside the notice u/s. 148 of the Act dated 25th January, 2014 and the order dated 16th March,2015 (WP No. 954/2014 dt. 11-3-2022. (AY. 2008-09)
Hanwant Manbir Singh v. Dy. CIT (Bom.)(HC)(UR)
S. 147 : Reassessment-After the expiry of four years-Deemed dividend-No failure to disclose truly and fully material facts-Referred 68 cases laws however not stated how case laws are applicable to the facts-The Order was quashed by observing that the Faceless Assessing Officer has wasted his time in writing unsustainable order on objects. [S. 2(22)(e), 148, Art. 226]