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Income 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 - The Income Tax Act, 1961 contains various provisions either expressly or impliedly. There are many deeming fiction provisions in the Act viz. section 50C, 43CA, 56(2)(x), etc. One such section is section 2(22)(e) of the Act which provides that an amount of loan or advance given to a shareholder directly or indirectly shall be treated as d...
Read MoreIncome Tax - Deeming Provision - deem things to be what they are not or changing some term to mean something more (or less) with the intent of conferring an advantage upon the taxman. Under the Income-tax Act, 1961 section 2(22)(e) is one such deeming provision that has been the focus of much litigation ever since its enactment....
Read MoreIncome Tax - “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 company or otherwise) made after the 31st day of May, 1987, by way of advance or loan to a shareholder, being a person who is the beneficial owner of s...
Read MoreIncome Tax - The concept of Deemed Dividend under the Income-tax Act, 1961 (the Act) is not new. However, time and again many closely held company assessees and their controlling shareholders, to their surprise and dismay, realise very late the importance of this powerful taxing tool in the hands of the Assessing Officer....
Read MoreShravan Choudhary Vs ACIT (ITAT Jaipur) - Shravan Choudhary Vs ACIT (ITAT Jaipur) If the transaction is a business transaction between the parties then the amount received under the said transaction cannot be held as loan or advance to be treated as deemed dividend under section 2(22)(e) of the Act. The assessee explained the facts regardin...
Read MoreShri V. Ramesh Vs ACIT (ITAT Chennai) - Hence it would be an appropriate analogy that the entire amount which is liable to be treated as deemed dividend has to be apportioned between both the shareholders in whose cases the conditions stipulated for attracting the provisions of Section 2(22)(e) of the Act are satisfied. Therefore as plead...
Read MoreACIT Vs M/s. Bhaawani Shankar Ginning Factory (ITAT Pune) - ACIT Vs M/s. Bhaawani Shankar Ginning Factory (ITAT Pune) The issue in the present ground is with respect to addition u/s 2(22)(e) of the Act. It is an undisputed fact that assessee had received loan from Mahesh Ginning Pvt. Ltd., in which both the partners of the assessee also held 18.19% shares ...
Read MoreCIT Vs Prem Motors (Madhya Pradesh HC) - Where assessee was not a member/shareholder of the concerned company, therefore, loan/advance received from such company was not deemed dividend under section 2(22)(e)....
Read MoreKIIC Investment Company Vs DCIT (IT) (ITAT Mumbai) - Amount advanced by Portescap to Videojet in which assessee was a common shareholder holding substantial shareholding could not be termed as loan falling within the purview of sec. 2(22)(e) as the same was shown in the balance-sheet of Portescap as well as Videojet as inter-corporate deposit (ICD)....
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...
Read MoreShravan Choudhary Vs ACIT (ITAT Jaipur) -
Shri V. Ramesh Vs ACIT (ITAT Chennai) -
ACIT Vs M/s. Bhaawani Shankar Ginning Factory (ITAT Pune) -
CIT Vs Prem Motors (Madhya Pradesh HC) -
KIIC Investment Company Vs DCIT (IT) (ITAT Mumbai) -
Modern Impex Vs Assistant Commissioner of Income-tax (ITAT Kolkata) -
CIT Vs Ms. Mustang Leather Pvt. Ltd. (Allahabad High Court) -
Microfinish Valves Private Limited Vs ACIT (ITAT Bengalore) -
