Income 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 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 - Author explains the intricacies and nuances of Section 2(22)(e) of the Income Tax Act, 1961 and the unsettled position on the controversy regarding the applicability of the provisions of deemed dividend....
Read MoreSri Ajay Kumar Khatore Vs DCIT (ITAT Ranchi) - Since trade advances obtained by assessee from its sister concern were in the nature of commercial transactions, would not fall within the ambit of the word ‘advance’ in section 2(22)(e)....
Read MoreNeha Home Builders (P.) Ltd. Vs DCIT (ITAT Mumbai) - Since the transaction between assessee-company and other group concern were in the nature of current account and inter banking account containing both types of entries i.e., receipts and payments and assessee was neither the beneficial nor the registered shareholder of the company, therefore, the am...
Read MoreACIT Vs Seema Devi Bansal (ITAT Delhi) - ACIT Vs Seema Devi Bansal (ITAT Delhi) Trade and commercial transactions are not covered in the definition of ‘loans and advances’ on which section 2(22)(e) can be applied. When the company got back its funds on the same day, it could not fall into the definition of the deemed dividend. FULL T...
Read MoreNutan Malpani, Vs Asst. Commissioner of Income Tax (ITAT Hyderabad) - Nutan Malpani Vs ACIT (ITAT Hyderabad) We noticed that when the assessee is having a regular business connection with the company and in that process, assessee receives or pays certain advances, they can be considered as ‘trade advances’ and not otherwise. In the given case, certain transactions...
Read MoreAditya Jyot Eye Hospital Pvt. Ltd. Vs ITO (ITAT Mumbai) - Aditya Jyot Eye Hospital Pvt. Ltd. Vs ITO (ITAT Mumbai) The assessee purchased the flat bearing flat no.602, in the building namely Ornate Galaxy, located at L.T. Road, Dadar (E), Mumbai. No doubt, the assessee Dr. Natarajan is the CMD of hospital and is having 99% share of the assessee company. Th...
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 MoreSri Ajay Kumar Khatore Vs DCIT (ITAT Ranchi) -
Neha Home Builders (P.) Ltd. Vs DCIT (ITAT Mumbai) -
ACIT Vs Seema Devi Bansal (ITAT Delhi) -
Nutan Malpani, Vs Asst. Commissioner of Income Tax (ITAT Hyderabad) -
Aditya Jyot Eye Hospital Pvt. Ltd. Vs ITO (ITAT Mumbai) -
Shri Jinendra Kumar Jain Vs ACIT (ITAT Delhi) -
M/s. Neha Home Builders Pvt. Ltd. Vs DCIT – 13(1)(1)(ITAT Mumbai) -
Sahir Sami Khatib Vs. ITO (Bombay High Court) -
Sri Srikanth Marru Vs ITO (ITAT Hyderabad) -