Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


ICDS Ltd v. CIT ( 2020) 10 SCC 529 Editorial. Order in CIT v. ICDS Ltd , ITA No. 353 of 2001 dt 18 -9 2007 ( Kran) (HC) is reversed .

Interpretation -Natural Justice – Audi Alteram Partem – Right of hearing – Cross -Examination – Matter remanded to first Appellate Authority .[IT Act , 1961 , S. 226 (3) ]

Empire Holdings Ltd v. Dy.CIT ( 2019) 112 taxmann.com 319 ( Chennai) (Trib)

S. 2(22)(e):Deemed dividend – Loans and advances to subsidiary – Not established the business purposes – Addition as deemed dividend is held to be valid – Reassessment is also held to be valid [ S. 147 , 148 ]

ACIT v. Jasubhai Engineering (P) Ltd ( 2020) 184 ITD 388/ 118 taxmann.com 430 (Mum) ( Trib)

S. 2(22)(e):Deemed dividend –Redeemable debenture – Addition cannot be made as deemed dividend – Advance for purchase of machinery – In the course of business addition cannot be made as deemed dividend – Intercorporate deposit – Repaid before end of relevant year – Addition as deemed dividend is held to be justified

ITO v. Yashovardhan Tyagi ( 2020) 184 ITD 461 / 116 taxmann.com 899( Delhi) ( Trib)

S. 2(22)(e):Deemed dividend – Business transaction – Common directors – Advance in the course of business as commercial transactions – Addition cannot be made as deemed dividend

ACIT v. Gurdeep Singh ( 2020) 183 ITD 317 / 117 taxmann.com 451 ( Chd) (Trib)

S. 2(22)(e):Deemed dividend – Share holder – Transferred share holding on borrower company to lender company before advance of loan – Addition cannot be made as deemed dividend .

Dy .CIT v .Veena Goyal ( Smt.) (2020) 119 taxmann.com 362 / 186 ITD 2 ( Jaipur ) (Trib)

S. 2(22)(e):Deemed dividend – Allotment of shares- Debited value of shares in the ledger account – Addition of debit balance as deemed dividend is held to be not be not justified .

Aspinwall and Co Ltd v. ACIT (2020) 183 ITD 621 / 116 taxmann.com 851 ( Cochin) (Trib)

S. 2(1A) : Agricultural income – Rubber manufacturer – Sale of rubber trees and timber cannot be brought to tax under rule 7A [ R.7A ]

Suvendra Kumar Pand v .ITO ( 2020) 121 taxmann.com 27 / 276 Taxman 171 ( Mag) (Mad) (HC)

S.148: Reassessment — Notice -Principal Officer- Notice issued in the name of Principal officer was quashed [ S.2(35(b) , 147 , Art . 226 ]

CIT v. Accel Ltd ( 2020) 429 ITR 36/ 273 Taxman 424/ 118 taxmann.com 103 ( Mad) (HC)

S. 2(22)(e):Deemed dividend – Amount received from subsidiary company as advance for providing corporate guarantee- Addition cannot be made as deemed dividend .

Vikram Krishna v. PCIT (2020) 114 taxmann.com 196 ( Delhi) (HC) Editorial: SLP of assessee is dismissed , Vikram Krishna v. PCIT (2020)269 Taxman 477/ 114 taxmann.com 197 (SC)

S. 2(22)(e):Deemed dividend – Director – No evidence to prove that the advance was in respect of sale of land – Addition as deemed dividend is held to be justified .