Deemed Dividend- Shares held by Subsidiary Co. is irrelevant

Assessee was a registered and beneficial shareholder of shares of M/S.Mega Resources Ltd., that conferred voting rights of only 1.7%. It is only this share holding that has to be considered for applying the first limb of Section 2(22)(e) of the Act and the shareholding of the Assessee’s subsidiary M/S.Hooghly Mills Projects Ltd., should not be considered and it is irrelevant. In the case of Bhaumik Colour (P) Ltd 313 ITR (AT) 146, the Hon’ble Special Bench has held that section 2(22)(e) has created a fiction whereby the definition of “dividend” has been enlarged to include ...