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2012 (8) TMI 767 - AT - Income TaxDeemed dividend – amount advanced to assessee who holds 10% of voting rights in company – company having accumulated profits as on the date of granting of the loan, which was more than the amount lent – assessee contended inapplicability of S 2(22)(e) on ground that amount has not been provided out of accumulated profits and it is out of amount withdrawn from CC A/c - Held that:- All the requirements of sec 2(22)(e) have been satisfied in the present case. The Assessee holds more than 10% of equity shares in M/s HFP (P) Ltd. The Company had lent Rs. 40,00.000/- at the instance of the assessee and in the books of accounts of the company the Assessee is shown as the debtor. Even though the loan was repaid within a short period the factum of the loan being granted cannot be denied. Therefore, amout of loan given to the Assessee is taxable as deemed dividends in the hands of the Assessee – Decided against assessee. On issue of granting of additional depreciation from accumulated profits in the hands of the company the CIT(A) has held that the issue does not arise for consideration as the company had not claimed additional depreciation
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