Bonus of Equity Shareholders not Covered under S.2(22)(b) of Income Tax Act, not Taxable as “Other Income” u/s 56(2): ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that bonuses issued to equity shareholders aren't taxable under section 56(2)(x) of the Income Tax Act, treating them as other income. The tribunal emphasized that such bonuses don't fall within the ambit of section 56(2)(x), which applies to gifts or receipts without consideration. Therefore, these bonuses should not be taxed as income. This decision clarifies the scope of taxable income under specific sections of the Income Tax Act.