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2016 (1) TMI 215 - AT - Income TaxValidity of assessment u/s 153A - accounted nature of the transactions in respect of the disputed gift - Held that:- It is noted that the additions were made not on account of "gifts" but on account of "source of funds for repayment of loans". In this regard, we find the said loans are repaid through journal entries. Therefore, Revenue Authorities are not supposed to make such additions in the assessment. Considering the factual matrix of the case as well considering the above settled legal position of the issue that in the absence of any incriminating material found during search, additions made on the assessed income are unsustainable in law, we are of the considered opinion that the additions made in the instant case are not sustainable and accordingly, we delete the same. - Decided in favour of assessee Disallowance u/s 40(a)(ia) - non deduction of tds - amount paid by the assessee to his landlord in respect of the legal expenses - Held that:- Considering the facts of the present case, to decide whether the said amount paid by the assessee to his landlord in respect of the legal expenses, is subject to deduction of TDS or not, the following points need to be ascertained viz., (i) what is the relationship between the assessee and the actually payer of the legal fees ie "principal to principal" relationship or "principal to an agent relationship"; (ii) whether it is a case of reimbursement or not; (iii) whether the co-owner effected the TDS when he made payment and (iv) whether the actual respondent assessed to tax and made the payment. Therefore, in our considered opinion, the matter should be remanded to the file of the AO to adjudicate the issue afresh and pass a speaking order on the above mentioned points. It is need less to mention that the assessee should be provided a reasonable opportunity of being heard as per the principles of natural justice - Decided in favour of assessee for statistical purposes.
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