Section 2(22)(e)

Tax Treatment of Dividend Received From A Foreign Company

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,...

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Section 2(22)(e) of Income Tax Act, 1961– Last word yet to be said

Income 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....

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Is Proposed Amendment in Finance Bill 2018 Levying Tax on Deemed Dividend u/s 2(22)(e), Results in Double Taxation??

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...

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Budget Shocker: 30% Dividend Distribution Tax on Deemed Dividend

Income 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....

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Clouds on deemed dividend provisions now cleared

Income 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...

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Section 2(22)(e) not applicable to Current Account Transactions

Rajesh 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. ...

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Provision of Section 2(22)(e) cannot be attracted to current account transactions

M/s Mirik Commercial Pvt. Ltd. Vs Pr. Commissioner of Income Tax (ITAT Kolkata) - M/s Mirik Commercial Pvt. Ltd. Vs Pr. CIT (ITAT Kolkata) The purpose of Section 2(22)(e) of the Act is to tax the benefit extended by private limited company to its shareholders holding shares not less than 10% as beneficial owner of shares (not being shares entitled to a fixed rate of dividend inco...

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Deemed Dividend not applicable to Current Account Transactions

M/s Sree Krishna Gyanodya Flour Mills Pvt. Ltd. Vs. Pr. Commissioner of Income Tax (ITAT Kolkata) - A division bench of the ITAT Kolkata comprising N.V.Vasudevan, Judicial Member and Waseem Ahmed, Accountant Member were ruled that the provisions of deemed dividend under section 2(22)(e) of the Income Tax Act would not applicable to Current Account Transactions....

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Provisions of Deemed Dividend not applicable to Capital Subsidy/Grant

Shri Vinod Kumar Mittal Vs ITO (ITAT Jaipur) - झrovision of S. 2(22)(e) along with its Explanations – 2 as stood at the relevant point of time, shall only mean that the expression accumulated profits shall only include all the profits of the company up to the date of distribution which are normal revenue profits...

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Deemed Dividend applicable if Assessee diverted amount received for procuring Import Licenses for Share purchase

Commissioner 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...

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No deemed dividend U/s. 2(22)(e) on trade advances in the nature of commercial transactions: CBDT

Circular 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...

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Recent Posts in "Section 2(22)(e)"

Section 2(22)(e) not applicable to Current Account Transactions

Rajesh 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 More

Tax Treatment of Dividend Received From A Foreign Company

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 More
Posted Under: Income Tax |

Provision of Section 2(22)(e) cannot be attracted to current account transactions

M/s Mirik Commercial Pvt. Ltd. Vs Pr. Commissioner of Income Tax (ITAT Kolkata)

M/s Mirik Commercial Pvt. Ltd. Vs Pr. CIT (ITAT Kolkata) The purpose of Section 2(22)(e) of the Act is to tax the benefit extended by private limited company to its shareholders holding shares not less than 10% as beneficial owner of shares (not being shares entitled to a fixed rate of dividend income). There is […]...

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Deemed Dividend not applicable to Current Account Transactions

M/s Sree Krishna Gyanodya Flour Mills Pvt. Ltd. Vs. Pr. Commissioner of Income Tax (ITAT Kolkata)

A division bench of the ITAT Kolkata comprising N.V.Vasudevan, Judicial Member and Waseem Ahmed, Accountant Member were ruled that the provisions of deemed dividend under section 2(22)(e) of the Income Tax Act would not applicable to Current Account Transactions....

Read More

Section 2(22)(e) of Income Tax Act, 1961– Last word yet to be said

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 More
Posted Under: Income Tax |

Provisions of Deemed Dividend not applicable to Capital Subsidy/Grant

Shri Vinod Kumar Mittal Vs ITO (ITAT Jaipur)

झrovision of S. 2(22)(e) along with its Explanations – 2 as stood at the relevant point of time, shall only mean that the expression accumulated profits shall only include all the profits of the company up to the date of distribution which are normal revenue profits...

Read More

Deemed Dividend applicable if Assessee diverted amount received for procuring Import Licenses for Share purchase

Commissioner 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 Act 1961....

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Deemed dividend assessable in the hands of Partners (Beneficial Shareholders )

M/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....

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No Deemed Dividend U/s. 2(22)(e) If Assessee is not a Shareholder in Payer Company

Mr. 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 not distribute such profit as dividend bec...

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S. 2(22)(e) deemed dividend not applicable on amount received from Subsidiary Co. as part of Regular Business Transactions

The 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/publications in the Gulf, causing the s...

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