Case Law Details
Sri Srikanth Marru Hyderabad Vs ITO (ITAT Hyderabad)
There is a nexus between the loan taken from the LIC and the premium paid for the Keyman Insurance Policy. Since the Keyman Insurance Policy is for the benefit to the assessee, it was held that the same is taxable as deemed dividend u/s 2(22)(e) of the Act. However, as rightly pointed out by the learned Counsel for the assessee, the provisions of section 2(22)(e) of the Act would be applicable only to the extent of accumulated profits of the company available at the beginning of the relevant financial year.
FULL TEXT OF THE ITAT JUDGMENT
This Miscellaneous Application is filed by the assessee seeking rectification of alleged mistakes apparent from the order of the Tribunal dated 31.05.2018. The assessee has stated as under:
“Sub:- Miscellaneous Petition u/s 254(2) of the Income Tax Act, 1961 arising out of ITA No.240/Hyd/2017 “B” Bench, AY:2009-10 – order pronounced on 31/05/2018-Rectification regarding.
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