‘Security Premium Reserve’ not part of accumulated profits u/s 2(22)(e)

ACIT Vs Bhagwati Coal Movers (P) Ltd. (ITAT Delhi) ITAT Delhi held that the ‘Security Premium Reserve’ cannot be regarded as part of accumulated profits under Section 2(22)(e) of the Income Tax Act. Facts- AO observed that the assessee has obtained loan amounting to Rs.5,52,50,000/- from M/s. Ajmala Stationery Ltd. A part of the loan amounting to Rs.2,57,00,000/- was repaid during the year. It was observed by the AO that the assessee-company is beneficial owner if more than 10% of voting power in the lender-company and thus susceptible to provisions of Section 2(22)(e) of the Act and conse...