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Income 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 MoreIncome Tax - The Finance Bill 2018, has proposed to cover deemed dividend u/s 2(22)(e) of Income Tax Act, also for levy of dividend distribution tax @ 30%, u/s 115-O of Income Tax Act, in the hands of a closely held company paying such deemed dividends. Apprehensions have been raised in some quarters as to whether the proposed amendment will result in...
Read MoreDCIT Vs M/s. Gilbarco Veeder Root India Pvt. Ltd. (ITAT Mumbai) - DCIT Vs Gilbarco Veeder Root India Pvt. Ltd (ITAT Mumbai) The appellant before us is a company which has received a sum of Rs.90 crores from other concern, i.e. Portescap. The assessee-company as well as the other concern, i.e. Portescap, have common shareholders inasmuch as the entire shareholdin...
Read MoreM/s. Fidelity Business Services India Pvt. Ltd. Vs Assistant Commissioner of Income- tax (Karnataka High Court) - M/s. Fidelity Business Services India Pvt. Ltd. Vs ACIT (Karnataka High Court) Issue- Whether the Income Tax Appellate Tribunal has power under Section 254 of the Income Tax Act, 1961, to give directions for fresh enquiry into the aspects of the subject matter of appeal filed before it either suo mo...
Read MorePr. CIT Vs Prakashkumar Bhagchandbhai Khatri (Gujarat High Court) - Pr. CIT Vs Prakashkumar Bhagchandbhai Khatri (Gujarat High Court) Where assessee, in terms of agreement with company for development and consideration of land owned by assessee, had received trade advances, the same were not loans, therefore, section 2(22)(e) was not attracted. The Tribunal while co...
Read MoreACIT Vs Sanjay Passi (ITAT Delhi) - ACIT Vs Sanjay Passi (ITAT Delhi) We are of the considered view that Ld. CIT(A) has rightly observed that AO has wrongly made the addition u/s. 2(22)(e) by holding that there are accumulated profits in the hands of M/s Robin Software Pvt. Ltd. Ld. CIT(A) has also noticed that the AO has completed th...
Read MoreRajesh Pagaria Vs I.T.O. Ward 48(2) (ITAT Kolkata) - Provisions of section 2(22)(e) related to deemed dividend are not applicable where the relevant transactions are in the nature of current account transactions and not loans and advances. ...
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 MoreDCIT Vs M/s. Gilbarco Veeder Root India Pvt. Ltd. (ITAT Mumbai) -
M/s. Fidelity Business Services India Pvt. Ltd. Vs Assistant Commissioner of Income- tax (Karnataka High Court) -
Pr. CIT Vs Prakashkumar Bhagchandbhai Khatri (Gujarat High Court) -
ACIT Vs Sanjay Passi (ITAT Delhi) -
Rajesh Pagaria Vs I.T.O. Ward 48(2) (ITAT Kolkata) -
M/s Mirik Commercial Pvt. Ltd. Vs Pr. Commissioner of Income Tax (ITAT Kolkata) -
M/s Sree Krishna Gyanodya Flour Mills Pvt. Ltd. Vs. Pr. Commissioner of Income Tax (ITAT Kolkata) -
