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2020 (1) TMI 1513 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - Substantial interest - two assessees namely Shri Aloke Kumar Ghosh and Shri Partha Sarathi Mondal are directors in a company namely M/s. Spandan Advance Medicare Pvt. Limited holding its 16% share each - HELD THAT:- No merit in Revenue’s stand invoking section 2(22)(e) deemed deduction of dividend under challenge. The fact remains that although the company hereinabove has paid for purchasing land(s) in the two assessees/directors’ names having 16% shares, the said lands form part of company’s balance-sheet only as its assets than that of these two assessees. The said company’s resolution(s) to this effect also indicates that these directors would not enjoy any right in the land. Smt. Biswas at this stage sought to justify the lower authorities’ action that if these two assessees/directors sell the land in future, that sum would indeed be in the nature of deemed dividends only - find no substance in the instant last argument as well as the land in question purchased in these two directors names cannot be taken as a “payment” per se as well - therefore, direct the Assessing Officer to delete the impugned addition(s) made in these two assessees’ cases. - Decided in favour of assessee.
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