S. MOHAN Vs. P. NAVEEN KUMAR

JUDGEMENT

(1.) These appeals have been filed by the Revenue under Section 260-A of the Income Tax Act, 1961 [the 'Act' for brevity] challenging the common order dated 17.09.2017 in I.T.A.Nos.1796/Mds/2017 and I.T.A.Nos.1797/Mds/2017 passed by the Income Tax Appellate Tribunal Madras 'A' Bench, Chennai [hereinafter referred to as 'Tribunal'] for the assessment years [for brevity 'AY'] 2012-2013 and 2014-2015.

(2.) Appeals were admitted on 11.09.2018 to decide the following substantial question of law:

(3.) The assessee filed the return of income on 30.09.2012 admitting the total income of Rs.1,19,26,530/-. An order was passed under Section 143(3) of the Act on 25.03.2015 assessing the said income. The assessment was reopened by issuance of notice under Section 148 of the Act dated 05.02.2016. The reason being that a sum of Rs.2 Crores was shown as unsecured loan obtained from M/s Abdul Wahid Tanneries Pvt., Ltd., [hereinafter referred to as the 'company'] by the assessee firm; One of the partners of the assessee firm, namely, Mr.T.Rafeeq Ahmed, who holds 35% stake in the assessee partnership firm, is also a share holder in the company holding 26.25% shares. Therefore, it was stated that the share holder of the company had substantial interest in the firm and consequently, the concept of deemed dividend under Section 2(22)(e) of the Act would apply.