No Shares, No Dividend-ITAT Holds Mandatory Transfer to Govt Not Liable for DDT

DCIT Vs Export Import Bank of India (ITAT Mumbai) In this case involving Export-Import Bank of India, the issue was whether amounts transferred to the Central Government could be treated as dividend liable to Dividend Distribution Tax (DDT) under section 115-O. The AO treated such transfer (₹31.58 crore) as dividend under section 2(22) and denied refund. However, the CIT(A) deleted the addition, relying on earlier Tribunal rulings in the assessee’s own case and in LIC. The ITAT upheld the CIT(A)’s order and held: The transfer to the Central Government was not a distribution of dividend,...