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2014 (4) TMI 536 - HC - Income TaxInterpretation of Section 292C of the Act – Materials seized and inference drawn by the revenue – Presumption as to assets, books of account - Held that:- The Tribunal rightly held that apart from the demands made by the five named commission agents or brokers for a higher rate of commission at 4-6%, there was no reasonable basis for the Revenue to assume or conclude that in fact such amounts, constituting the difference of what was revealed in the books and what would arise on account of fulfilment of such demands, were actually paid - presumptions which the Revenue falls back upon under Section 292C do not support its case. The failure to gross up on account of the addition of the notional income and the consequential liability to deduct tax for TDS purposes too could not have been cast upon the assessee - there was no dispute that the funds deployed by the assessee to its subsidiaries or sister concerns was not borrowed funds but its share capital and other surplus that had been generated in the course of the business – the funding by the parent or holding company to the sister concern or subsidiary to advance its business objective would fall within the framework of legitimate expenditure - the order of the Tribunal is upheld - thus, no substantial question of law arises for consideration - Decided against Revenue.
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