Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 856 - AT - Income TaxDeemed dividend addition u/s 2(22)(e) - HELD THAT:- The purpose of Section 2(22)(e) of the Income Tax Act, 1961 plainly seeks to bring within the tax net accumulated profits which are distributed by closely held companies to its shareholders in the form of loans. The purpose being that persons who manage such closely held companies should not arrange their affairs in a manner that they assist the shareholders in avoiding the payment of taxes by having companies payer distribute, what would legitimately be dividend in the hands of shareholders, money in the form of advance or loan. On going through the order of CIT(A) we observe that he has passed well-reasoned order and, in our considered, it does not require any interference. CIT(A) considered the submissions made by the assessee before him and analyzing the issue with case law, held that the provision of section 2(22)(e) has no application in case of the assessee. Therefore, we do not find any infirmity in the order of the CIT(A) in directing the AO to delete the addition - Decide in favour of assessee.
|