Section 2(22)(e) doesn’t apply to unregistered shareholder

ACIT Vs Claridge Hotels Pvt. Ltd. (ITAT Delhi) Provisions of section 2(22)(e) of the Act are not applicable as the assessee was not a registered shareholder of the company Facts- During assessment proceedings, AO observed that the gross profit of the assessee has significantly dropped for the year under consideration in comparison to the earlier AY of 28.59% gross profit and net profit of 7.96%. The gross profit for the current year was 15.24% and the net profit of 1.74%. AO held that on deduction of income from other sources of Rs.14.46 Cr. the net profit would have been further steeped down....