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2018 (8) TMI 846 - AT - Income TaxDeemed dividend u/s 2(22)(e) - amount upto the accumulated profits of the company - rectification of an order u/s 254(2) - Appellant is a substantial shareholder in the company - the company took a loan against the Keyman Insurance Policy and this sum was advanced to the Appellant - Held that:- Since the Keyman Insurance Policy is for the benefit to the assessee, it was held that the same is taxable as deemed dividend u/s 2(22)(e) of the Act. However, as rightly pointed out by the learned Counsel for the assessee, the provisions of section 2(22)(e) of the Act would be applicable only to the extent of accumulated profits of the company available at the beginning of the relevant financial year. Thus, we agree with the contention of the assessee, that there is a mistake apparent from the order of the Tribunal. Additions restricted to the amount of accumulated profit - Decided partly in favor of assessee.
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