Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1217 - AT - Income TaxDeemed dividend u/s 2(22)(e) - Held that:- In the facts of present case assessee has merely been a medium to transfer the loan amount by M/s Sharma Medicare Pvt.Ltd. to M/s Eastern Creations Ltd. due to the restriction u/s 3(1)(iii)(d) of Companies Act, 1956. A specific query was put forth by Bench to Ld.AR, as to why intercorporate loans were not advanced to M/s Eastern Creations. Ld.AR was unable to reason out the business exigency for advancing loans to M/s Eastern Creation through assessee. In over all consideration of the issue as deliberated upon in the foregoing paragraphs, we are of the view that Ld.AO was within his realm to invoke provisions of Sec.2(22)(e) of the Act. We therefore uphold the action of authorities below. Accordingly ground No. 1 and 2 raised by assessee stand dismissed. TDS u/s 194 - interest paid to financial companies - Addition u/s 40(a)(ia) - non deduction of tds - Held that:- AO has rightly made addition of interest paid to these financial companies for non deduction of TDS u/s 194 of the Act. However in the event assessee is able to produce relevant information before Ld.AO to establish that M/s Reliance Capital Ltd. and M/s Bajaj Capital Ltd. have paid tax on such interest received, then Ld.AO shall grant relief to assessee as per law. Addition made towards purchase of medicines and materials - Held that:- We observe that assessee is rendering OPD services, where patients are attended by assessee and cost of medicines issued at the counter are included in the fees payable by them. However, we fail to understand how entire medicines/materials worth ₹ 21,41,248/- would be distributed amongst the patients. Ld.AR has not filed any details like total number of patients attended by assessee during the year, in order to establish a reasonable distribution of medicines purchased by assessee. He has also not placed on record details of medicines/materials purchased. We therefore do not find any infirmity in restricting the disallowance to ₹ 50,000/- by Ld.CIT(A). The same is therefore upheld.
|