TMI Blog2019 (8) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... ower. A proper reading of Section 2(22)(e) can only lead to one conclusion, which is also what the ITAT concluded, viz., that the said amount which is borrowed by the Assessee from VCIPL, in which Verizon Singapore holds more than 10% of voting power can if it all, be taxed only as deemed dividend in the hands of Verizon Singapore and not the Assessee. No substantial question of law arises - ITA 555/2019 - - - Dated:- 22-8-2019 - S. MURALIDHAR AND TALWANT SINGH JJ. Appellant Through: Mr. Zoheb Hossain, Sr. Standing Counsel. Respondent Through: Mr. N. Venkataraman, Sr. Advocate with Mr. R. Satish Kumar, Mr. Jatin Rajput and Mr. Vinay K. Sharma, Advocates. O R D E R 1. The Revenue is in app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndment in Section 2(22)(e) of the Act and it was observed in paras 18 and 19 as under: 18. This being the case, we are of the view that the whole object of the amended provision would be stultified if the Division Bench judgment were to be followed. Ankitech s case, in stating that no change was made by introducing the deeming fiction insofar as the expression shareholder is concerned is, according to us, wrongly decided. The whole object of the provision is clear from the Explanatory memorandum and the literal language of the newly inserted definition clause which is to get over the two judgments of this Court referred to hereinabove. This is why shareholder now, post amendment, has only to be a person who is the beneficial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thus, it is seen that what has been doubted by the Supreme Court in National Travel Services (supra) about the decision in Ankitech Pvt. Ltd. (supra) is only to the extent whether to attract Section 2(22)(e) of the Act, a shareholder need not be a registered shareholder but could be a beneficial owner of such shares. To the extent that Ankitech Pvt. Ltd. (supra) holds that the borrower cannot be fastened with the tax liability qua such deemed dividend the correctness of the said decision has not been doubted in National Travel Services (supra). 6. Turning to the impugned order of the ITAT the Court finds that it is consistent with the law explained by this Court in Ankitech Pvt. Ltd. (supra) as affirmed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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