Yashvardhan Gokuldas Binani Vs ITO (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT) Mumbai has set aside an ex-parte order that treated a loan received by M/s Francis Klein & Co. (Bombay) Pvt. Ltd. from M/s Decon Mercantile Pvt. Ltd. as a deemed dividend in the hands of common shareholder Yashvardhan Gokuldas Binani. The Tribunal, in its order dated May 30, 2025, restored the matter to the National Faceless Appeal Centre (NFAC) for fresh adjudication, citing the assessee’s plea for an opportunity to present evidence regarding the commercial nature of the transaction.
The appeal was filed by Mr. Yashvardhan Gokuldas Binani against the NFAC’s order dated June 19, 2024, which had dismissed his appeal against an intimation order issued under Section 144 read with Section 147 of the Income Tax Act, 1961, for Assessment Year 2012-2013.
Background of the Case
Mr. Binani had originally filed his income tax return on July 20, 2012, declaring an income of INR 23,750. Subsequently, the Assessing Officer (AO) received specific information indicating that M/s Decon Mercantile Pvt. Ltd., a closely-held company, had extended a loan or advance of INR 1,33,05,699 to another closely-held company, M/s Francis Klein & Co. (Bombay) Pvt. Ltd., during the Financial Year 2011-2012.
