Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 1325 - ITAT DELHICarry forward and set off of losses in the case of certain companies - set off of brought forward losses u/s 79 on the ground that there has been change in the shareholding - CIT-A after noting the shareholding pattern, held that through-out the holding company was WSP Cyprus and the change in ultimate holding company form WSP UK does not affect the shareholding of WSP Cyprus in the assessee company - HELD THAT:- There is no change in the shareholding of the Assessee company, i.e. WSP Cyprus held 99.99 percent shares in the Assessee company - WSP Cyprus was the registered and beneficial shareholder of the Assessee company in AY 2012-13 (i.e. the year in which loss was incurred) and in AY 2013-14 & AY 2014-15 (i.e. the years in which such loss was set-off); Change in ultimate holding company from WSP UK (upto 31 July 2012) to WSP Canada (from 1 August 2012) does not affect the shareholding of WSP Cyprus in the Assessee company - There is nothing on record which could indicate that ultimate holding company was the beneficial shareholder in the Assessee company having more than 51% or more voting right. Thus it is well settled proposition that registered shareholder is beneficial owner of shares, unless such shares are held in the capacity of a nominee/agent/trustee of the real owner which is not the case here. Accordingly, the order of the ld. CIT (A) is confirmed and the same is based on correct appreciation of facts and law. Ground No.1 in both the years is determined against the Revenue. Disallowance on account of club expenditure - AO has disallowed amount in the name of the Director considering the said expenses personal in nature - HELD THAT:- CIT (A), after referring to various decisions, held that expenses in relation to club fee are to be treated as business of the assessee and an allowable expenditure. We do not find any infirmity in such finding and the same is confirmed. Ground No.2 of AY 2014-15 is dismissed.
|