{"id":59603,"date":"2026-04-17T12:23:08","date_gmt":"2026-04-17T06:53:08","guid":{"rendered":"https:\/\/itatonline.org\/digest\/relitrade-stock-broking-p-ltd-v-ito-2025-306-taxman-133-guj-hc\/"},"modified":"2026-04-17T12:23:08","modified_gmt":"2026-04-17T06:53:08","slug":"relitrade-stock-broking-p-ltd-v-ito-2025-306-taxman-133-guj-hc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/relitrade-stock-broking-p-ltd-v-ito-2025-306-taxman-133-guj-hc\/","title":{"rendered":"Relitrade Stock Broking (P.) Ltd. v. ITO (2025) 306 Taxman 133 (Guj.)(HC)"},"content":{"rendered":"<p style=\"margin-bottom: .0001pt;text-align: justify;line-height: 150%\"><span lang=\"EN-IN\" style=\"font-family: 'Verdana',sans-serif\">The AO contended that the assessee had obtained<span class=\"apple-converted-space\">\u00a0<\/span><strong><span style=\"font-family: 'Verdana',sans-serif\">substantial unsecured loans<\/span><\/strong><span class=\"apple-converted-space\">\u00a0<\/span>from its amalgamated company in which a<span class=\"apple-converted-space\">\u00a0<\/span><strong><span style=\"font-family: 'Verdana',sans-serif\">common director held a <\/span><\/strong><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">substantial interest<\/span><\/strong><b>, and therefore sought to treat the amount as<span class=\"apple-converted-space\">\u00a0a <\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">deemed dividend<\/span><\/strong><span class=\"apple-converted-space\"><b>\u00a0<\/b><\/span><b>under<span class=\"apple-converted-space\">\u00a0<\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">section 2(22)(e)<\/span><\/strong><b>. The Court, however, noted that the amounts in question did<span class=\"apple-converted-space\">\u00a0<\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">not represent unsecured loans<\/span><\/strong><b>, but arose from<span class=\"apple-converted-space\">\u00a0<\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">credit balances in running accounts<\/span><\/strong><b>, comprising<span class=\"apple-converted-space\">\u00a0<\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">payment receipts, margins, interest on margins, and trade advances<\/span><\/strong><b>. Such trade-related credit balances were held to be<span class=\"apple-converted-space\">\u00a0<\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">outside the scope of section 2(22)(e)<\/span><\/strong><b>. Accordingly, the<span class=\"apple-converted-space\">\u00a0<\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">reassessment proceedings were held to be unsustainable<\/span><\/strong><span class=\"apple-converted-space\"><b>\u00a0<\/b><\/span><b>and were<span class=\"apple-converted-space\">\u00a0<\/span><\/b><strong><span style=\"font-family: 'Verdana',sans-serif;font-weight: normal\">quashed and set aside<\/span><\/strong><b>. (AY.2016-17)<\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 147 : Reassessment-With in four years-Deemed Dividend-Trade Advances-Credit Balances-Common Shareholding-Reassessment Invalid. [S.2(22)(e), 148, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59603","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fvl","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59603"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59603\/revisions"}],"predecessor-version":[{"id":59604,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59603\/revisions\/59604"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}