https://www.taxtmi.com/caselaws?id=421183 The tribunal ruled in favor of the assessee, holding that the issuance of bonus shares did not trigger the application of Sec. 2(22)(b) read with Sec. 115-O. It found that the bonus shares did not involve an actual outflow of funds and did not constitute a distribution of assets. As the bonus shares were issued to equity shareholders and not preference shareholders, the dividend distribution tax under Sec. 115-O was deemed inapplicable. The tribunal directed the Assessing Officer to cancel the demand against the assessee, allowing one appeal and dismissing another as moot. en-us Wed, 06 Apr 2022 00:00:00 +0530 Mon, 18 Apr 2022 21:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421183 The tribunal ruled in favor of the assessee, holding that the issuance of bonus shares did not trigger the application of Sec. 2(22)(b) read with Sec. 115-O. It found that the bonus shares did not involve an actual outflow of funds and did not constitute a distribution of assets. As the bonus shares were issued to equity shareholders and not preference shareholders, the dividend distribution tax under Sec. 115-O was deemed inapplicable. The tribunal directed the Assessing Officer to cancel the demand against the assessee, allowing one appeal and dismissing another as moot. Case-Laws Income Tax Wed, 06 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421183