The Tax Publishers2020 TaxPub(DT) 2556 (Kol-Trib)

INCOME TAX ACT, 1961

Section 2(22)(e)

Since accumulated loss in case of company having made advance to assessee-company was in negative, amount received as advance could not be taxed under section 2(22)(e) in assessee's hands.

Dividend - Deemed dividend under section 2(22)(e) - Receipt of advance vis-a-vis no accumulated profit in case of lending company -

AO taxed advance received by assessee from its subsidiary company EDP Software Ltd. as deemed dividend under section 2(22)(e). Held: Assessee submitted figures of accumulated profit of M/s. EDP Software Ltd. as on 31-3-2012 which related to assessment year 2012-13, and accumulated profit was in negative, that is, loss to the tune of Rs. 10,60, 332. Since accumulated profit as on 31-3-2012 was in negative, section 2(22)(e)(e) did not apply.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 2(22)(e)

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