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TMI Blog2022 (7) TMI 1475X X X X Extracts X X X X X X X X Extracts X X X X ..... e also find that the assessee has included the undisclosed income in its books of account resulting an increase in the accumulated profits of the company. The Ld. CIT(A) has rightly computed the accumulated profits for the purpose of section 2(22)(e) of the Act subject to verification of certain tax challans of the CIT(A)'s order. We also note that the Ld. AO has rightly considered the directions of the Ld. CIT(A) and passed the consequential order revising the order passed U/s. 143(3) r.w.s 254 of the Act. Reopening u/s. 148 - As we find from the record that the Ld. AO has rightly given the reasons for such reopening and reopening is well within the period as prescribed under the Act. Therefore, this ground raised by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue went on appeal to ITAT against the order of the Ld. CIT(A) and the Hon ble ITAT vide its order in ITA No.281 282/V/2010, dated 6/9/2011 set-aside the order of the Ld. CIT(A) and directed the Assessing Officer to determine the accumulated profits in accordance with law in order to decide the quantum of deemed dividend. The AO issued necessary notices to the assessee and in response the assessee s Authorized Representative appeared and furnished the required details. The AO then considering the submissions made by the Assessee s Representative the AO passed an order U/s. 143(3) r.w.s 254 of the Act assessing the loan amount of Rs. 1,03,96,980/- as deemed dividend U/s. 2(22)(e) of the Act. Aggrieved by the order of the Ld. AO, assessee p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2005-06. Hence, assessment proceedings based on the notice U/s. 148 are not maintainable. 2. The payments were cleared during the AY 2005-06, if at all, the issue of deemed edividend is to be considered it was in the AY 2005-06, and not in the AY 2004-05 hence reopening of the assessment for the AY 2004-05 is not justified. 5. Ground No.2 of the original grounds of appeal is general in nature and need not be adjudicated. 6. The Ld. AR submitted that the undisclosed income admitted during the search operations should not be used for computation of accumulated profits of the company. The Ld. AO before the Ld. CIT(A) and before us relied on the decision of the Delhi Bench of the Tribunal in the case of Promod Kumar Dang vs. JCIT, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the company or otherwise) 5 made after the 31st day of May, 1987 , by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten per cent of the voting power, or to any concern, in which such shareholder is a member or a partner and in which he has a substantial interest (hereafter in this clause referred to as the said concern)] or any payment by any such company on behalf, or for- the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits; 9. From the plain reading of the section, it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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