Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 907 - AT - Income TaxUnclaimed dividend transferred to Reserve - AO as well as the CIT(A) were of the view that unclaimed dividend were transferred to the General Reserve Account which showed that such liability ceased to exist and therefore, the same was liable to be taxed - Held that:- The lower authorities have mis-directed themselves in taxing the unclaimed dividend as an income. Ostensibly, dividend distribution by the assessee bank is an apportioned from its tax paid profits and does not a charge against the profits for the purposes of computing taxable income. Once dividend declared by the assessee bank is not a charge against the profits in order to compute taxable income, any unclaimed dividend thereof, cannot be charged as an income under the Act. Therefore, we set aside the order of the CIT(A) and direct the Assessing Officer to delete the impugned addition. - Decided in favour of assessee Addition on account of other liabilities - Held that:- The stand of the Revenue is unsustainable. It is abundantly clearly that assessee had reflected the impugned sum as a liability in the Balance Sheet. If at all, the Assessing Officer was to treat the same as income in the hands of the assessee, the onus was on him to explain as to how the amounts are to be taxed as incomes. The Assessing Officer does not justify as to why he has treated the impugned sum as income to be taxed under the Act. There is nothing to support the assertions of the Assessing Officer that the bank has ceased to be liable to return the impugned sums. Therefore, we are unable to uphold the stand of the income tax authorities on this aspect and accordingly, we set aside the order of CIT(A) and direct the Assessing Officer to delete the impugned addition - Decided in favour of assessee
|