Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961 - s.2(22)(e) Explanation 3 - Deemed |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961 - s.2(22)(e), Explanation 3 - Deemed dividend - Appellant-assessee, an HUF subscribed to the shares of Assessing Officer made certain addition to the income a of company assessee-HUF on account of deemed dividend - Assessee-HUF contended that it was neither the beneficial shareholder nor registered shareholder and as the shares of the company were in the name of the Karta of HUF and not in name of the HUF. s.2(22)(e)was not attracted - Held: Ar per Explanation J(a) "concern", inter alia, means HUF - As per, Explanation 3(b) a person is deemed to have a substantial interest in a HUF if he is beneficially entitled to ·nor less than 20% of the income of such - In the instant case, shares are held by Karta who is undoubtedly the member of assessee-HUF - He also has substantial interest in HUF and is entitled to not less than 20% of the income of HUF - Therefore, provisions of s.2(22)(e} are attracted.Income Tax Act, 1961 -.s.2(22}(e) - Deeming provision - Held:The Section creates a fiction bringing any amount paid otherwise than as a dividend into the net of dividend under certain circumstances - Such a deemed provision which fictionally creates certain kinds of receipts as dividends, to be given strict interpretation- unless all the conditions contained in the said 'provision are fulfilled, the receipt cannot be deemed as dividends '-- In case of doubt' where two views are possible, benefit shall accrue in favour- of the assesses. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2017 INSC 22 |
Petitioner | Gopal And Sons (huf) |
Respondent | CIT Kolkata-XI |
SCR | [2017] 1 S.C.R. 86 |
Judgement Date | 2017-01-04 |
Case Number | 12274 |
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