2009 (2) TMI 61

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.... Mrs. Swati Soparkar for Respondent. JUDGMENT The judgment of the court was delivered by JUSTICE D. A. MEHTA - The Income Tax Appellate Tribunal, Ahmedabad Bench 'C' has referred following question under Section 256(2) of the Income Tax Act, 1961 ('the Act' for short), at the instance of the Commissioner of Income Tax : "Whether the Appellate Tribunal is right in law and on facts in ob....

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....ent by the Company has to be from the accumulated profits. That in the instant case the Tribunal found that Assessing Officer had not recorded any finding that there were accumulated profits within the meaning of said term under Section 2(22)(e) of the Act. The Tribunal therefore deleted the addition. 3. Mr. M. R. Bhatt, learned Senior Standing Counsel appearing for the applicant revenue submit....

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....t by any such company on behalf or for individual benefit of any such share holder, can be deemed as a dividend provided the share holder fulfills the requirements of being a beneficial owner of the share holding having not less than ten per cent of the voting power etc. However, before such payment by the Company could be deemed to be dividend for bringing to tax, in the hands of the share holder....

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....r that the company possessed accumulated profits. Therefore, on this count the impugned order of the Tribunal does not suffer from any legal infirmity so as to warrant interference. 8. In so far as the contention that Tribunal ought to have sent the matter back to the Assessing Officer for ascertaining existence or otherwise of accumulated profits suffice it to state that in absence of any plea....