Additions u/s 2(22)(e) & 68 Deleted – Payments Held Against Salary & Refund from Broker

Kabir Mulchandani Vs ACIT (ITAT Mumbai) Assessee, Kabir Mulchandani, had not filed his return for AY 2000-01 within time. AO completed assessment ex parte u/s 144 determining total income at ₹3.14 crore, making additions under various heads-salary, deemed dividend u/s 2(22)(e), unexplained cash credits, unexplained expenditure, etc. CIT(A) initially dismissed the appeal, but ITAT remanded the matter in 2007 for fresh consideration. Upon re-adjudication u/s 250 r.w.s. 254, CIT(A) partly allowed the appeal and sustained only: ₹23,21,000 as deemed dividend u/s 2(22)(e); and ₹18,75,000 as un...