2016 (1) TMI 328 - SCH - Income Tax

Deemed dividend u/s 2(22)(e) - Apex Court dismissed the revenue appeal after condoning the delay against the decision of HC 2015 (3) TMI 767 - DELHI HIGH COURT wherein HC hald that, Loan to the assessee and the loan (in the form of credits in favour of SISICOL) were really one transaction. It is also a matter of record that the firm had over 290 branches or units and collection by it exceeded- on an average ₹ 10 crores per month. Therefore, it could not be legitimately held that amount retained by the firm was for the assessee s benefit. The amount of ₹ 1,84,19,305 was not deemed dividend in the hands of the assessee under the provisions of Section 2 (22) (e) of the Income Tax Act, 1961.

Summary

The Supreme Court of India dismissed the Special Leave Petitions after condoning the delay. The court did not interfere based on the facts noted by the High Court in the impugned judgment.