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2016 (6) TMI 327 - AT - Income TaxDeemed dividend u/s. 2(22)(e) - Held that:- In the present case, the assessee is holding 10,99,300 shares in M/s. Mega Resources Ltd as per register produced by the assessee before the lower authorities. This fact was examined by the Tribunal in the above case. When the assessee is holding the shares as indicated above, which comes to less than 10% of total equity shares of M/s. Mega Resources Ltd., the reasoning of the AO as it is noticed from the assessment order that both the assessee and M/s. Mega Resources Ltd are closely holding shares belonging to same to avoid the tax. But, no contrary evidence brought on record against to the assessee’s claim. In the light of the observations made by the Tribunal in assessee’s own case and also following the principle laid down by the Special Bench, ITAT, Mumbai in the case of Bhaumik Color P.Ltd (2008 (11) TMI 273 - ITAT BOMBAY-E ), we are of the view that the CIT was not justified in confirming the order of the AO in making additions. - Decided in favour of assessee TDS u/s 194A - Addition made u/s. 40(a)(ia) - interest paid to a party without deducting TDS - Held that:- Considering the case of the assessee that the interest paid to M/s Methoni Tea Ltd on unsecured loan and debited to the P/L account and did not deduct the tax U/Sec 194A of the Act, we hold that the assessee cannot be a defaulter in view of the first proviso to section 201(1) r/w second proviso to section 40(a)(ia) of the Act. The second proviso to Section 40(a)(ia) is declaratory and curative in nature having retrospective effect from 01-04-2005 and the case on hand being for A.Y 2005-06, in our view, the matter shall go back to AO. Therefore, we remand ground no. 3 to AO for examination and for verification of the required details of the resident i.e M/s Methoni Tea Ltd and direct the assessee to cooperate in completing the assessment.- Decided in favour of assessee for statistical purposes.
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