CIT v. National Travel Services

347 ITR 305High Court2012#5146 most cited

What is CIT v. National Travel Services authority for?

Deemed dividends under Section 2(22)(e) apply when a loan or advance is given by a closely held company to a partner or a person for the substantial benefit of a shareholder, even if the firm is not directly a shareholder. The existence of accumulated profits is a necessary pre-condition for the application of Section 2(22)(e).

23

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2012 to 2024.

Also referred to as

CIT v. National Travel Services · Section 2(22)(e) · deemed dividend · accumulated profits · closely held company · loan or advance · partner of firm · substantial benefit of shareholder · beneficial owner

Also reported as

14 Taxmann.com 14202 Taxmann 327
Read the full judgment

Issues it is cited on

section 47closely held companyaccumulated profitssection 2(22)deemed dividendsection 2(22)(e)beneficial ownerdirect tax vivad se vishwasliable to taxsection 56escapement of incomesection 131

Judgments citing CIT v. National Travel Services

Commissioner of Income Tax (TDS)-I vs. C.J. International Hotels Pvt. Ltd

ITA - 57 / 2015HC Delhi09 Feb 2015
Section 153Section 2Section 201

…ce of compelling reasons, this Court should follow the ruling in NHK Japan (supra). 5. So far as the question on merits is concerned, learned counsel relies upon the Division Bench ruling in Commissioner of Income Tax v. National Travel Service, (2012) 347 ITR 305 (Del) and CIT Vs. Ankitech (P) Ltd. (2012) 340 ITR 14 to say that the requirement of Section 2 (22) (e) is fulfilled only if both the pre-conditions are met with. 6. It is evident from the above discussion that the assessee was sought to be proceeded against Section 201 as one in default, after the period of four years. This Court is consc…

CIT vs. Bharti Overseas Trading Co

The appeal is disposed of

ITA-401/2011HC Delhi29 Feb 2012
Section 2(22)(e)Section 260ASection 54

…9. On the first issue of deemed dividend, we have in our order dated 16.1.2012 referred to the concession made by the counsel for the respondent-assessee in view of decision of this Court in Commissioner of Income Tax Vs. National Travel Services (2011) 14 Taxmann.com 14 (Delhi). In these circumstances, accordingly, we frame the following substantial question of law : “Whether the Income Tax Appellate Tribunal was right in holding that Section 2(22)(e) of the Income Tax Act, 1961 is not applicable on the ground that the partnership firm i.e. the respondent-assessee was not a shareholder in Bharti Ent…

CIT vs. Bharti Overseas Trading Co

The appeal is disposed of

ITA - 401 / 2011HC Delhi29 Feb 2012
Section 2(22)(e)Section 260ASection 54

…9. On the first issue of deemed dividend, we have in our order dated 16.1.2012 referred to the concession made by the counsel for the respondent-assessee in view of decision of this Court in Commissioner of Income Tax Vs. National Travel Services (2011) 14 Taxmann.com 14 (Delhi). In these circumstances, accordingly, we frame the following substantial question of law : “Whether the Income Tax Appellate Tribunal was right in holding that Section 2(22)(e) of the Income Tax Act, 1961 is not applicable on the ground that the partnership firm i.e. the respondent-assessee was not a shareholder in Bharti Ent…