2018 (2) TMI 2031 - HC - Income Tax

Deemed dividend addition u/s 2(22)(e) - Revenue submitted that the Tribunal did not correctly appreciate the ratio laid down by the Supreme Court in case of Gopal And Sons (HUF) 2017 (1) TMI 331 - SUPREME COURT - HELD THAT - Tax Appeal is ADMITTED for consideration of following substantial question of law. Whether the Income Tax Appellate Tribunal was right in law in upholding the order of the Commissioner (Appeals) deleting the addition made of a sum of ₹ 12.35 crores by the Assessing Officer as deemed dividend in the hands of the assessee company under section 2(22)(e) of the Act?

Summary

The Gujarat High Court admitted a Tax Appeal to consider whether the Income Tax Appellate Tribunal was correct in upholding the deletion of a deemed dividend addition of Rs. 12.35 crores in the hands of the assessee company under section 2(22)(e) of the Income Tax Act, 1961. The Tribunal's decision was challenged based on the interpretation of Supreme Court rulings.