https://www.taxtmi.com/caselaws?id=63338 The Tribunal upheld the CIT(A)'s decision to reduce the deemed dividend addition from Rs. 25,42,772 to Rs. 1,85,821 under s. 2(22)(e) of the IT Act, recognizing that the share premium account, being a capital receipt, was not distributable as dividend. The Tribunal emphasized the statutory provisions of the Companies Act, which restrict the use of share premium for dividend distribution, and aligned with the Supreme Court's interpretation that share premium does not constitute commercial profits. Consequently, the Revenue's appeal was dismissed, affirming the CIT(A)'s assessment with no order as to costs. en-us Mon, 07 Apr 2008 00:00:00 +0530 Mon, 18 Dec 2023 18:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=63338 The Tribunal upheld the CIT(A)'s decision to reduce the deemed dividend addition from Rs. 25,42,772 to Rs. 1,85,821 under s. 2(22)(e) of the IT Act, recognizing that the share premium account, being a capital receipt, was not distributable as dividend. The Tribunal emphasized the statutory provisions of the Companies Act, which restrict the use of share premium for dividend distribution, and aligned with the Supreme Court's interpretation that share premium does not constitute commercial profits. Consequently, the Revenue's appeal was dismissed, affirming the CIT(A)'s assessment with no order as to costs. Case-Laws Income Tax Mon, 07 Apr 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=63338