TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>High Court affirms revision of assessment order under Income Tax Act, stresses law application for deemed dividend</h1> <h3>The Commissioner of Income Tax Versus M/s. Prem Electric Conductors Pvt. Ltd.</h3> The Commissioner of Income Tax Versus M/s. Prem Electric Conductors Pvt. Ltd. - TMI Issues:1. Revision of assessment order under section 263 of the Income Tax Act.2. Applicability of section 2(22)(e) regarding deemed dividend.3. Proper application of law in assessing deemed dividend.Analysis:1. The Tax Case Appeal was filed against the order passed by the Income Tax Appellate Tribunal. The Commissioner revised the assessment order under section 263 of the Act due to the failure of the Assessing Officer to consider the applicability of section 2(22)(e) regarding deemed dividend. The Tribunal quashed the revision order, leading to the current appeal by the Revenue.2. The case involved the receipt of a significant sum from a sister concern, which was deemed as dividend under section 2(22)(e) due to the cessation of business activities by the assessee. The Commissioner directed the Assessing Officer to tax the amount as deemed dividend. Additionally, another credit amount was identified for further investigation under the same provision.3. The Tribunal found that the advances were business-related and not subject to section 2(22)(e) provisions. It was argued that the assessment was thorough, and no error existed to warrant revision. However, the High Court observed that the original assessment lacked proper consideration of available records, justifying the Commissioner's revision. The Court remanded the matter back to the Commissioner for a fresh review, emphasizing adherence to legal principles without prior biases.
TaxTMI 