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Income Tax - Highlights / Catch Notes

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Addition on account of deemed dividend u/s 2(22)(e) - advance on ...

Income Tax

March 1, 2022

Addition on account of deemed dividend u/s 2(22)(e) - advance on account of business transaction cannot be categorized as loans so as to attract deeming fiction under section 2(22)(e) of the Act. - AT

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  1. Deemed dividend addition u/s.2(22) - trade advance in relation to business transaction cannot be treated as deemed dividend - AT

  2. Deemed Dividend - addition of advance salary as deemed dividend - advance was not in the nature of loan and hence cannot be treated as deemed dividend u/s 2(22)(e) - AT

  3. Deemed dividend u/s 2(22)(e) - transactions made by the assessee and the company are for business purposes and are not deemed dividend under section 2(22)(e) - AT

  4. Deemed dividend u/s 2(22))e) - repayment of loan or advance by the Company

  5. Deemed dividend u/s 2(22)(e) - payments made by the company towards advances to the assessee fulfils all the characteristics of 'dividend' as envisaged in S. 2(22)(e) - AT

  6. Deemed dividend u/s 2(22)(e) - oan or advance to a non-shareholder cannot be taxed as deemed dividend in the hands of the a non shareholder - AT

  7. Deemed dividend u/s 2(22)(e) - assessee company is not holding a single share in company lending advance - no addition - AT

  8. Deemed dividend u/s 2(22)(e) - trade advances made for the commercial transactions would not be hit by section 2(22)(e) of the Act - HC

  9. Deemed dividend - looking at the transactions from the objects of section 2(22)(e) it cannot be said that there was diversion of dividend in the form of loans or advances.

  10. Deemed dividend - looking at the transactions from the objects of section 2(22)(e) it cannot be said that there was diversion of dividend in the form of loans or advances.

 

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