2018 (3) TMI 1528

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....ri.P.K.R. Menon, SR. Counsel, GOI (TAXES) And Sri.Jose Joseph, SC, For Income Tax JUDGMENT K. Vinod Chandran, J. The appellant is before us; with a question of law as re-framed by this Court vide order dated 29.10.2014, as against the order of the Tribunal, which is as herein below:- "Whether the authorities below did not commit an error of law while holding that the above "dividends" are di....

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....ablished the College and which used the advance paid to the assessee. There is also no dispute that the assessee is a major shareholder in the Private Limited Company which made the advance. All the ingredients available in Section 2(22)(e) of the Act are attracted. The question raised is as to whether the assessee would be liable to tax for the said advance amounts at his hands. 3. The learned C....

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....he advanced amounts are from the accumulated profits. An additional tax under Section 115(O) can be levied on the payee Company and no tax can be levied on the receiver. 4. The learned Standing Counsel appearing for the Revenue takes us through Section 115(O) to contend that only those amounts, which are levied with additional income tax under Section 115(O) would be excluded under Section 10(34)....

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....(e) of Section 2(22) from the expression of dividend for the purposes of Chapter XII-D [containing Section 115(O) to 115(Q)]. Prior to sub-section (34) of Section 10 dividend was taxable as income in the hands of the recipient. Only in the context of nonadditional tax being levied on the Company, declaring and paying dividend, that exemption was granted to the recipient-shareholder. Deemed dividen....