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Income 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 MoreIncome Tax - Deemed dividend U/s. 2(22(e) is proposed to be taxed at the rate of 30 per cent. (without grossing up) in order to prevent camouflaging dividend in various ways such as loans and advances....
Read MoreIncome Tax - The important aspect while planning restructuring proposals is the applicability of deemed dividend provisions that was under the controversial route which is now put to rest with the latest ruling by the Apex Court. The muddle of taxability under deemed dividend as per section 2(22)(e) is now cleared by the latest ruling of the Apex Cou...
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 - 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 MoreCommissioner of Income Tax Vs. M/s Prasidh Leasing Limited (Delhi High Court) - While hearing the case of Commissioner of Income Tax vs M/s Prasidh Leasing Limited, the Delhi High Court ruled that Provisions of Deemed Dividend applicable when Assessee diverted Advance amount received for procuring import licenses for purchase of shares under Section 2(22)(e) of the Income Tax A...
Read MoreM/s. Kerala Transport Co. Vs. The Asst. Commissioner of Income-tax (ITAT Cochin) - Tribunal held that the beneficial shareholders of the lender company are partners of the assessee- firm and therefore the deemed dividend u/s 2(22)(e) has to be assessed only in the hands of the partners and not in the hands of the assessee- firm....
Read MoreMr. Tushar Kothari Vs. DCIT (ITAT Delhi) - Mr. Tushar Kothari Vs. DCIT (ITAT Delhi) The intention behind enacting provisions of Section 2(22)(e) is that closely held companies (i.e. companies in which public are not substantially interested), which are controlled by a group of members, even though the company has accumulated profits would no...
Read MoreThe Commissioner of Income Tax Vs. M/s Malayala Manorama Co. Ltd. (Kerala High Court) - CIT Vs. M/s Malayala Manorama Co. Ltd. (Kerala High Court) Amounts under the disputed heads were being received by the Assessee from its Subsidiary Company only as part of regular business transactions, which was being accounted properly. The change in circumstance, as to the distribution of dailies...
Read MoreRoshan Lal Jindal Vs DCIT (ITAT Chandigarh) - The issue in hand pertains to addition made on account of deemed dividend as per provisions of section 2(22)(e) of the Act. Being a deeming provision, bringing to tax sums which are not actually in the nature of income but are only deemed to be so, it is to be strictly interpreted. Section 2(22)(e) ...
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 MoreCommissioner of Income Tax Vs. M/s Prasidh Leasing Limited (Delhi High Court) -
M/s. Kerala Transport Co. Vs. The Asst. Commissioner of Income-tax (ITAT Cochin) -
Mr. Tushar Kothari Vs. DCIT (ITAT Delhi) -
The Commissioner of Income Tax Vs. M/s Malayala Manorama Co. Ltd. (Kerala High Court) -
Roshan Lal Jindal Vs DCIT (ITAT Chandigarh) -
National Travel Service Vs. CIT (Supreme Court of India) -
National Travel Service Vs. CIT (Supreme Court of India) -
Dinesh Kumar Agarwal Vs. ITO (ITAT Hyderabad) -
