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2017 (10) TMI 634 - AT - Income TaxChargeability to tax u/s 115O - Chargeability of additional income tax in respect of the amount declared distributed or paid by a domestic company by way of dividend on or after 01.04.2003 - Held that:- It is noted that the facts for the A.Y. 2011-12 are almost identical as A.Y. 2010-11 and therefore in view of the finding on this issue for the A.Y. 2010-11 on principle this issue is decided in favour of the assessee because the instance of chargeability of tax arises on 30.09.2011 when the dividend was declared which would fall in the A.Y. 2012-13 and not in the A.Y. 2011-12. It is pertinent to note that there are two instances of chargeability of DDT and the dispute is only regarding the assessment year in which the dividend so declared by the assessee is chargeable to tax u/s 115O of the Act. Therefore, as far as the principle demand on account of DDT is concerned there is no dispute about the total amount of principle demand and the only dispute which may arise in any case is regarding the interest on the said demand. The dividend declared on 30.08.2011 is chargeable to DDT only during the A.Y. 2012-13 but AO has not raised any demand for the said assessment as it was assessed for the A.Y. 2011-12. Therefore, even if the tax liability is determined in the A.Y. 2011-12 it is in fact the liability for the A.Y. 2012-13 Accordingly, this issue set aside to the record of the AO to verify the payment made by the assessee on 10.10.2011 on account of DDT in respect of the dividend amount of ₹ 1,95,00,000/- declared on 30.09.2011. If the said amount is till available for credit in the account of the assessee and has not been adjusted against any other tax liability then the Assessing Officer may consider the said amount against the taxability on account of DDT which is chargeable for the A.Y. 2012-13. Assessee of the appeals are allowed.
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