Description:
Where assesses is not a shareholder of the paying company, the dividend is not assessable in its hands. The legal fiction in Section 2(22) (e) enlarges the definition of dividend but does not extend to, or broaden the concept of a “shareholder”.
CIT vs. Ankitech Pvt. Ltd. (Delhi) (High court).
Source:
1. www.aiftponline.org
2. AIFTP TIMES Volume.No.2 July, 2011, Page No. 5.
3. www.itatonline.org
Our comment:
If the dividend paid to any person who is not a share holder cannot be taxed in the hands of the recipient
