SOLITAIRE REALINFRA PRIVATE LIMITED,NOIDA V. DCIT, GHAZIABAD

MA 209/DEL/2025

AI Insights

The case revolves around a dispute concerning the classification of certain amounts received by Solitaire Realinfra Pvt. Ltd. from three lender companies as deemed dividends, which was contested in the earlier appeal (ITA No.1193/Del/2021). The primary legal issue was whether the assessee, not being a beneficial or registered shareholder in the lender companies, could have the amounts received treated as deemed dividends. The Tribunal initially overlooked this factual matrix, leading to a rectification application by the assessee. The Tribunal acknowledged the oversight and corrected the record, thereby favoring the assessee's position.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780246 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 24-06-2025
• Other Referred Cases: ITO vs. Ankitech Private Limited (2012) 340 ITR 0014 (Delhi-HC), ITO vs. Madhur Housing and Development Company (2018) 401 ITR 0152 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Deemed dividend

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘C’ : NEW DELHI. BEFORE SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER MA No.209/DEL/2025 (in ITA No.1193/DEL/2021) (Assessment Year: 2017-18) Solitaire Realinfra Pvt. Ltd., vs. DCIT, Central Circle, Sector 25, Jaypee Greens Sports City, Ghaziabad. In front of Buddha Circuit, Noida – 110 065 (Uttar Pradesh). (PAN : AACCH4156K) (APPLICANT) (RESPONDENT) APPLICANT/ASSESSEE BY : Dr. Rakesh Gupta, Advocate Shri Somil Aggarwal, Advocate REVENUE BY : Shri Om Prakash, Sr. DR Date of Hearing : 26.09.2025 Date of Order : 06.10.2025 O R D E R PER S. RIFAUR RAHMAN, AM : 1. This misc. application is filed by the Applicant/Assessee against the order of the Tribunal in ITA No.1193/Del/2021 dated 13.06.2025 for Assessment Year 2017-18 for rectification of the impugned order dated 13.06.2025. 2. At the time of hearing, it was submitted that the assessee has filed an appeal vide appeal No.ITA 1193/Del/2021 for AY 2017-18 raising Printed from counselvise.com 2 MA No.209/Del/2025 ground nos.14 to 17 wherein it was challenged the addition on the issue of deemed dividend which was sustained by ld. CIT (A), against which it was submitted that the assessee is not a beneficial or registered shareholder in any of the three lender companies, therefore, the amount received by the assessee cannot be treated as deemed dividend as held in the case of ITO vs. Ankitech Private Limited (2012) 340 ITR 0014 (Delhi-HC) and ITO vs. Madhur Housing and Development Company (2018) 401 ITR 0152 (SC). It is also brought to our notice that the abovesaid argument was duly recorded at para 49 in the impugned order passed by the Tribunal. It was also submitted that the assessee is not a beneficial or registered shareholder in any of the three lender companies is also evident from the following material submitted at the time of original hearing. He brought to our notice page 48 of the first appellate order wherein ld. CIT (A) has recorded that assessee is not a beneficial or registered shareholder in any of the three lender companies. Further he brought to our notice financial statements of the lender companies, namely, HP Agro Developers Pvt. Ltd., Jyoti Aquatech Pvt. Ltd. and Sahni Aquatech Pvt. Ltd. which are placed on record in paper book. It is also brought to our notice that the same was also submitted before the ld. CIT (A) which is also placed at page 43 of the appellate order. Further it was submitted that at page 45 of the first appellate order wherein ld. CIT Printed from counselvise.com 3 MA No.209/Del/2025 (A) has reproduced remand report from the AO as noted in para 47 at pages 31 & 32 of the ITAT order and it clearly shows that the AO accepted the fact that the assessee is not a beneficial or registered shareholder in any of the three lender companies. However, at para 50 of the ITAT order, it was observed that, “However, there is no information available on record with regard to actual shareholding of the assessee with the abovesaid group concerns.” With the above observation, the Bench has sustained the findings of the ld. CIT (A) and Ground No.6 raised by the Revenue as well as Ground Nos.14 to 17 raised by the assessee are dismissed. He submitted that the above mistake is apparent on record and the coordinate Bench has wrongly observed that the assessee is a beneficial or registered shareholder, therefore, it was prayed that the said findings of the ITAT may be rectified or recalled. 3. On the other hand, ld. DR of the Revenue objected to the above submissions and submitted that there is no mistake apparent on record. 4. Considered the rival submissions and material placed on record. After considering the detailed submissions made before us, we observe that the factual matrix submitted before us clearly shows that the assessee is not a beneficial or registered shareholder in any of the three lender companies which was also confirmed by the AO in his remand report and assessee has elaborately submitted to this effect before the ld. CIT (A) as well as Printed from counselvise.com 4 MA No.209/Del/2025 before us but due to inadvertent mistake above factual matrix was overlooked and since assessee has clearly brought on record the factual matrix which is apparent on record which clearly shows that the assessee is not a beneficial or registered shareholder in any of the three lender companies, which is evident from record. Therefore, we are inclined to allow the ground nos.14 to 17 raised by the assessee by this order and dismiss Ground no.6 of Revenue’s appeal. Accordingly, the order dated 13.06.2025 is amended to that extent and rest of the order remain the same. 5. In the result, the misc. application filed by the assessee is allowed. Order pronounced in the open court on this 6TH day of October, 2025. SD/- SD/- (ANUBHAV SHARMA) (S.RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.10.2025 TS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "