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2018 (5) TMI 1757 - AT - Income TaxDeemed divided u/s 2(22)(e) - amounts advanced to the assessee by the company - assessee claimed that same were relatable to chits - Held that:- it is clear that the assessee has received the bid amount as a customer of the company and not as a Director or the shareholder of the company. The business transaction of the company do not fall within the provisions of deemed dividend u/s 2(22)(e) of the Act. Therefore, the addition of ₹ 2,88,000 is deleted. - Decided in favor of assessee. Deemed dividend - the loan taken was in respect of key man policy taken on the life of the assessee - Held that:- Since the nexus between the loan and advance to the assessee is clearly established and there is accumulated profit of the company available to such an extent, the same is taxable as deemed dividend u/s 2(22)(e) of the Act. - Decided against the assessee.
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