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TMI Blog2018 (3) TMI 1528X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-Clause (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 non-additional tax being levied on the Company, declaring and paying dividend, that exemption was granted to the recipient-shareholder. Deemed dividends are not exempted since there is no payment of additional tax under Section 115(O). The revenue is right in contending that the exclusion under Section 10(34) would be applicable only for the amounts, which has suffered tax under Section 115(O). The question of law hence has to be answered in favour of the Revenue - I.T.A. No.191 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Counsel appearing for the assessee would take us through the provision under Section 2(22)(e) of the Income Tax Act, 1961 [for brevity, the Act] as also the provision under Section 10(34); the latter exempting dividends referred to in Section 150(O). There is no dispute that the money advanced by the Hospital to the assessee for the trust would fall under the definition of deemed dividend as available in Section 2(22)(e). The contention is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts it beyond any pale of doubt and excludes sub-Clause (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 dividends are not exempted since there is no payment of additional tax under Section 115(O). The revenue is right in contending that the exclusion under Section 10(34) would be applicable only for the amounts, which has suffered tax under Section 115(O). The question of law hence has to be answered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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