CIT Vs. STANDIPACK PVT. LTD.

JUDGEMENT

(1.) REVENUE , by this appeal, under Section 260A of the Income Tax Act, 1961, impugns the order dated 22nd December, 2010 passed by the Tribunal in the case of Standipack Pvt. Ltd. in ITA No. 3791/Del/2010 and cross objection No. 293/Del/2010 pertaining to the assessment year 2006 -07.

(2.) BY the impugned order, the Tribunal has held that the provision of deemed dividend in section 2(22)(e) of the Act was not applicable as the respondent/assessee was not the beneficial owner of the shares of M/s. Wecan Services Limited. It has been held that Saumya Meattle was the beneficial owner of the said shares and therefore, the requirement of Section 2(22)(e) was not satisfied. The tribunal has held that the requirement is that the shareholder should also be the beneficiary owner of the shares.

(3.) AS far as Delhi High Court is concerned, this question is no longer res Integra and stands concluded vide decision dated 11th May, 2011 in ITA No. 352/2011 titled CIT Vs. Indian Technocraft Limited. This ITA was disposed of along with number of other ITAs including ITA No. 462/2009 titled CIT Vs. Ankitech Pvt. Limited.