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TMI Blog2022 (4) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... Principal Commissioner of Income Tax, Salem (Pr. CIT) vide order dated 01.03.2018. The other appeal arises out of the order of Learned Commissioner of Income Tax (Appeals), Salem [CIT(A)] dated 27.08.2019 in the matter of consequential assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 263 of the Act on 19.12.2018. 2. The Ld. AR, assailing the revisional jurisdiction, submitted that bonus shares were allotted to equity shareholders and therefore, the provisions of Sec. 2(22)(b) r.w.s. 115-O could not be attracted as wrongly held by Ld. Pr. CIT. To support the same, our attention has been drawn to various documents as placed in the paper book. The Ld. AR also submitted that there was no release of assets in favor of equity s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the company. However, rejecting the same, Ld. Pr. CIT held that since the assessment order was passed by Ld. AO without verification, the same would require revision u/s 263. Accordingly, Ld. AO was directed to re-assess afresh in the light of observations made in the revisional order. 4. Pursuant to these directions, an assessment has been reframed by Ld. AO on 19.12.2018. During the course of assessment proceedings, the assessee reiterated that bonus do not entail release of assets and placed reliance on the decision of Hon'ble High Court of Gujarat in the case of Shashibala Navnital V/s CIT (54 ITR 478). However, rejecting the same, Ld. AO computed Dividend Distribution Tax u/s 115-O on amount of Rs. 45 Lacs and raised a demand agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise) during specified period, whether out of current or accumulated profits shall be charged to additional income-tax. The dividend, in simple words, refers to the amount paid to shareholders in proportion to the shareholding in the company. As per the provisions of Sec.2(22) dividend includes- (a)any distribution by a company of accumulated profits, whether capitalized or not, if such distribution entails the release of assets by the company to its shareholders of all or any part of the assets of the company, or (b) any distribution to its shareholders by a company of debentures, debenture-stock, or deposit certificates in any form, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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