Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Deemed dividend u/s 2(22)(e) arises when an interest-free loan is provided by a company to a substantially related concern in shareholding. The issue was whether the deemed dividend is taxable in the hands of the concern receiving the loan or in the hands of the common shareholder. The Tribunal, relying on Delhi and Bombay High Court decisions, held that the deemed dividend u/s 2(22)(e) is taxable only in the hands of the shareholder. The contention that since a common entity held more than 10% shares in both the lender and borrower companies, the loan attracted section 2(22)(e) was rejected. The Tribunal ruled that the addition made by the Assessing Officer on account of deemed dividend u/s 2(22)(e) in the hands of the assessee-borrower was required to be deleted.
Deemed dividend u/s 2(22)(e) arises when an interest-free loan is provided by a company to a substantially related concern in shareholding. The issue was whether the deemed dividend is taxable in the hands of the concern receiving the loan or in the hands of the common shareholder. The Tribunal, relying on Delhi and Bombay High Court decisions, held that the deemed dividend u/s 2(22)(e) is taxable only in the hands of the shareholder. The contention that since a common entity held more than 10% shares in both the lender and borrower companies, the loan attracted section 2(22)(e) was rejected. The Tribunal ruled that the addition made by the Assessing Officer on account of deemed dividend u/s 2(22)(e) in the hands of the assessee-borrower was required to be deleted.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4918 
