Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 709 - HC - Income TaxDeemed Dividend u/s 2(22)(e) – The Assessing Officer invoked provisions of Section 2(22)(e) of the Income Tax Act, 1961 and had made an addition as deemed dividend in the hands of the respondent assessee - Held that:- The recipient would be a shareholder by way of deeming provision - It is not correct on the part of the Revenue to argue that if this position is taken, then the income ‘‘is not taxed at the hands of the recipient” - such loan or advance is not an income - Such a loan or advance has to be returned by the recipient to the company, which has given the loan or advance - If the amounts advanced are for business transactions between the parties, such payment would not fall within the deeming dividend under section 2(22)(e) of the Act – Decided against Revenue.
|