Section 2(22)(e) Addition Cannot Be Made on Non-Shareholder Entity: Calcutta HC

PCIT Vs Apeejay Surendra Amanagement Services Pvt Ltd (Calcutta High Court) The Calcutta High Court dismissed the Revenue’s appeal concerning the taxability of deemed dividend under Section 2(22)(e) of the Income Tax Act, 1961. Before considering the appeal, the Court condoned a delay of 477 days in filing the matter after finding the explanation offered by the Revenue satisfactory. The Revenue had challenged the order of the Income Tax Appellate Tribunal, Kolkata Bench, for Assessment Year 2014-15. The substantial question raised was whether the Tribunal was justified in holding that an add...