ITAT Deletes Deemed Dividend Addition as Cash Shortage Related to Proprietary Concern

K P Nanjundi Vishwakarma Vs ACIT (ITAT Bangalore) In this case, the appeal was filed against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2018-19 concerning the addition of Rs.79,73,599 as deemed dividend under Section 2(22)(e) of the Income Tax Act. A search and seizure operation under Section 132 was conducted on 4 January 2018. During the search proceedings, a discrepancy of Rs.79,73,599 was found between the cash book balance and the physical cash available. The Manager of Lakshmi Gold Khazaana Pvt. Ltd. stated in a statement recorded under Section 132(4) that ...