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

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