Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 655 - AT - Income TaxDeemed dividend addition under section 2(22)(e) - Held that:- There has to be some material on the record to demonstrate the factual elements embedded in the arguments of the learned counsel. That's not the case here. In any event, as the Assessing Officer has very well demonstrate on the facts of this case, all the conditions for attracting the taxability under section 2(22)(e) are satisfied on the facts of this case. The assessee has received the monies from a company in which he is the shareholder, the shareholding of the assessee exceeds the specified threshold limit, the company has sufficient accumulated profits and reserves and surplus and the amounts received are in the nature of loans and advances. The plea now taken by the assessee, i.e. advances being compensation for personal guarantees, is nothing but a cover up and unsupported by material on record. The assessee's plea that these advances in the nature of transactions in the ordinary course of business has been effectively demolished by the Assessing Officer, and learned CIT(A) was quite justified in upholding these findings. Whether these advances were to help the assessee in overcoming temporary liquidity crises or not is wholly irrelevant because as long as it is in nature of loans or advances, and other pre-conditions for applicability of Section 2(22)(e) are satisfied, such loans and advances are required to be taxed as deemed dividend. We uphold very well reasoned stand of the authorities below, and decline to interfere in the matter. The order of the CIT(A) thus stands confirmed. - Decided against assessee.
|