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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 MoreShri Jinendra Kumar Jain Vs ACIT (ITAT Delhi) - Shri Jinendra Kumar Jain Vs ACIT (ITAT Delhi) It is, therefore, clear from the evidence on record that assessee in fact, has let-out the joint property to the tenant company and has received advance as well as security deposit of the aforesaid amounts. The authorities below rejected the claim of ass...
Read MoreM/s. Neha Home Builders Pvt. Ltd. Vs DCIT – 13(1)(1)(ITAT Mumbai) - M/s. Neha Home Builders Pvt. Ltd. Vs DCIT (ITAT Mumbai) Since assessee was neither the beneficial nor the registered shareholder of the company, the amount so received is not liable to be taxed as deemed dividend. Moreover, the transaction between two group concerns were in the nature of current acc...
Read MoreSahir Sami Khatib Vs. ITO (Bombay High Court) - Delhi ITAT has allowed the proportionate allocation of deemed dividend on the basis of the shareholding of the borrowing company. We find this Judgment to be wholly inapplicable to the facts of the present case as in the facts of this decision, both the shareholders were holding more than 10% in the...
Read MoreSri Srikanth Marru Vs ITO (ITAT Hyderabad) - 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) o...
Read MoreRajmal Lakhichand Vs JCIT (ITAT Pune) - Computation of book profit is as per section 40(b) and remuneration to partner is based on current year’s "Book Profits", while set-off of brought forward losses is to be granted in terms of section 72. Therefore, while arriving at business income, deduction of section 40(b) is to be given first a...
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 MoreShri 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) -
Rajmal Lakhichand Vs JCIT (ITAT Pune) -
DCIT 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) -
