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2019 (3) TMI 1463 - AT - Income TaxAddition u/s. 40(a)(ia) for failure of TDS u/s 194C - payments made relating to Freight charges without deducting tds - limited prayer of the assessee that after the amendment in sec. 200/201 when the recipient of the amounts have shown in their return of income, the amount in question and has been assessed to tax, then disallowance is not warranted - HELD THAT:- We find force in the contention of the assessee and direct the AO to adjudicate the issue afresh. And direct that if the payees have reflected this payment in question towards them in their respective Return of Income and have taken into account this sum of amount in their Return of Income and has paid tax due on the income declared in the Return of Income, and fulfils the conditions stipulated u/s. 200 of the Act, then no disallowance u/s. 40(a)(ia) of the Act is warranted. Needless to say, the AO may call for the aforesaid details from the payees in case it is found necessary. So, we set aside the order of Ld. CIT(A) and remand the matter back to AO for fresh adjudication as directed above. - Appeal of assessee are allowed for statistical purposes. Deemed dividend addition u/s 2(22)(e) - HELD THAT:- We note that assessee firm is not a shareholder of M/s. Modern Solaurum Pvt. Ltd. So, sec. 2(22)(e) of the Act is not attracted against the assessee firm and so the impugned addition invoking sec. 2(22)(e) of the Act cannot be sustained as held by the Hon’ble Delhi High Court in Ankitech pvt ltd [2011 (5) TMI 325 - DELHI HIGH COURT] wherein this principal/ratio has been held. So since the Firm being not a shareholder of the Pvt. Ltd. company which lent the money cannot be taxed by applying sec. 2(22)(e) of the Act. So, the addition is deleted. This ground of appeal of assessee is allowed.
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