Income Tax : Courts have held that reopening an assessment on identical facts under a different deeming provision is invalid. The key takeaway ...
Income Tax : Learn about deemed dividends under Section 2(22) of the Income-tax Act, 1961, its implications, and key judicial precedents relate...
Income Tax : Gain insights on Deemed Dividends under the Income Tax Act: Understand taxability, TDS applicability, and key exemptions for optim...
CA, CS, CMA : Explore intricacies of deemed dividends in India. Understand definitions, applicable transactions, and tax implications. Uncover i...
Income Tax : The dividend income received by non-resident individuals, including Foreign Portfolio Investors (FPIs) and Non-Resident Indian cit...
Income Tax : The issue was addition of deemed dividend under search assessment. The tribunal held that without incriminating material, addition...
Income Tax : ITAT Mumbai held that CIT(A) cannot enhance income by introducing a new issue not examined by the Assessing Officer. The ruling cl...
Income Tax : The issue was whether incorrect tax treatment amounts to concealment. The Tribunal held that mere wrong classification in books do...
Income Tax : The ITAT reaffirmed that Section 2(22)(e) cannot extend the definition of shareholder to a concern receiving the loan. The deemed ...
Income Tax : ITAT Delhi held that Section 2(22)(e) cannot apply where the assessee held less than 10% shareholding in the lending company. As s...
Income Tax : Section 2(22) clause (e) of the Income Tax Act, 1961 (the Act) provides that dividend includes any payment by a company, not being...
The issue was whether an outstanding loan could be taxed as deemed dividend in a year when no loan was received. The Tribunal held that the decisive factor is the year of payment and remanded the matter for fresh examination.
The Tribunal held that a short-term loan received from a sister concern cannot be treated as deemed dividend under section 2(22)(e). The loan was for business purposes, not for shareholder benefit. Key takeaway: transactions between sister concerns do not automatically attract dividend treatment even if there is common shareholding.
While upholding part of addition under Section 2(22)(e), ITAT Mumbai directed Assessing Officer to restrict deemed dividend amount only to extent of accumulated profits of lending company.
ITAT Surat rules company’s capital contribution to a partnership firm for business purposes is not a loan or advance, thus escaping deemed dividend tax u/s 2(22)(e).
The Income Tax Appellate Tribunal (ITAT) Chennai ruled in the case of Late Ramasamy Pongianna Gounder Desamani Vs ITO that a loan from one company to another, where a common shareholder holds less than 20% of the voting power in the borrowing company, cannot be taxed as deemed dividend under Section 2(22)(e) of the Income-tax Act, 1961.
The Kerala High Court ruled that a Tribunal’s observation to assess under S. 68 is non-binding, granting the assessee an “open remit” to challenge the cash credit addition.
Learn why the ITAT quashed the deemed dividend addition. The Tribunal found the payment was a salary adjustment, not a loan, and the AO failed to disprove the source of the cash credit.
The ITAT Ahmedabad bench ruled that loans from current accounts for business purposes cannot be classified as deemed dividends under Section 2(22)(e) of the Income Tax Act. Learn why this decision matters for inter-company financial transactions.
It is settled proposition of law that CBDT circulars are binding on department and it has to be strictly followed by officers of department. AO cannot be permitted to travel beyond the issues for which case was selected for limited scrutiny without taking mandatory permission from concerned PCIT or Pr.CCIT.
Prasad Film Laboratories Pvt. Ltd. Vs ACIT (Telangana High Court) Payments in Normal Business Course Not Deemed Dividend under Section 2(22)(e): Relief for M/s. Prasad Film Laboratories Pvt. Ltd., Telangana High Court Clears Misapplication of Deemed Dividend Provisions in Inter-Company Business Transactions Background: M/s. Prasad Film Laboratories Pvt. Ltd., a closely held company, filed appeals against […]
