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Income Tax - Capital reduction is a commonly adopted tool by companies for re-engineering their capital structure. The need for reducing share capital may arise owing to a number of reasons, such as returning excess funds to the shareholders, adjustment of accumulated losses, minority squeeze out, improving EPS, producing a more efficient capital stru...
Read MoreIncome Tax - Article discusses about Meaning of dividend, Head of taxability and applicable tax rate, Relief from double taxation, Concessional rate of tax to dividends received from foreign specified company,...
Read MoreIncome Tax - In terms of Section 2(22)(e) of the Income Tax Act, 1961, dividend" includes any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) made after the 31st day of May, 1987, by way of advance or loan:...
Read MoreIncome Tax - Friends, as you all are aware that if any loan or advance is given by any closely held company (Private Company) to: A shareholder who is having equal to or more than 10% of share capital in that company or; Any concern (ex. XYZ Pvt. Ltd.) in which such shareholder is having shareholding of equal […]...
Read MoreIncome Tax - – Section 2(22)(e) of the IT Act’1961 deals with the issue of “deemed dividend.” – Provisions of Section 2(22)(e) are as under: “dividend” includes‑(e) any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the ...
Read MoreD.C.I.T Vs M/s. The Hooghly Mills Co.Ltd. (ITAT Kolkata) - In DCIT v. M/s. The Hooghly Mills Co.Ltd, the ITAT Kolkata held that shareholding by Subsidiary Company is irrelevant while considering ‘deemed dividend’ liability of Holding Company under section 2(22)(e) of the Income Tax Act....
Read MorePrincipal Commissioner of Income Tax Vs M/s. Ennore Cargo Container Terminal P. Ltd. (Madras High Court) - Though, advance received by assessee company may have been for the benefit of the aforementioned registered shareholders, it could only be assessed in the hands of those registered shareholders and not in the hands of the assseeee-company....
Read MoreDeputy Commissioner of Income-tax Vs M/s. The Hooghly Mills Co. Ltd. (ITAT Kolkata) - Thus, section 2(22)( e) of the Act covers only such situations, where the shareholder alone benefits from the loan. In the instant case the company benefits from the said transaction, it will take the character of a commercial transaction and hence will not qualify to be dividend. ...
Read MoreGopal and Sons (HUF) Vs CIT (Supreme Court of India) - As HUF cannot be a registered shareholder in a company and hence could not have been both registered and beneficial shareholder, loan/advances received by HUF could be deemed as dividend within the meaning of Section 2(22)(e) of Income Tax Act,...
Read MoreShri Uday K. Pradhan Vs ITO (ITAT Mumbai) - Since redemption of preference shares does not result in reduction of share capital as per Sec 80 of the Companies Act,1956 , the redemption value cannot be taxed as deemed dividend as the distribution of profits if at all there may be is not resulting in reduction of capital....
Read MoreCircular No. 19/2017-Income Tax - (12/06/2017) - Section 2(22) clause (e) of the Income Tax Act, 1961 (the Act) provides that dividend includes any payment by a company, not being a company in which the public are substantially interested, of any sum by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares...
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Circular No. 19/2017-Income Tax - (12/06/2017) -
D.C.I.T Vs M/s. The Hooghly Mills Co.Ltd. (ITAT Kolkata) -
Principal Commissioner of Income Tax Vs M/s. Ennore Cargo Container Terminal P. Ltd. (Madras High Court) -
Deputy Commissioner of Income-tax Vs M/s. The Hooghly Mills Co. Ltd. (ITAT Kolkata) -
Gopal and Sons (HUF) Vs CIT (Supreme Court of India) -
Shri Uday K. Pradhan Vs ITO (ITAT Mumbai) -
CIT (TDS) Vs Schutz Dishman Bio-Tech Pvt. Ltd. (Gujarat High Court) -
Sri Manoj Murarka Vs ACIT (ITAT Kolkata) -
