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2021 (7) TMI 729 - AT - Income TaxAddition u/s 2(22)(e) - HELD THAT:- Apart from that the judgment passed in the case of CIT vs. Daisy Packers Pvt. Ltd. [2015 (7) TMI 253 - GUJARAT HIGH COURT] while deciding the issue in favour of the assessee the Hon’ble Court has been pleased to hold that the provision of Section 2(22)(e) of the Act is applicable for the loan and advance transaction between a company and a registered shareholder and not beneficial shareholder. Thus, relying upon the ratio laid down in all the judgments discussed above passed by the different Judicial Forum, the Ld. CIT(A) in our considered opinion rightly deleted the addition made by the AO as unjustified under the provision of Section 2(22)(e) of the Act so as to warrant interference. Hence, the ground preferred by the Revenue is found to be devoid of any merit and hence, dismissed. Disallowance u/s 40(a)(ia) - payment of impugned amount made to five parties in respect of freight and forwarding expenses rejecting the appellant’s contention that TDS is not applicable for the freight expenses to non-resident shipping agencies agent and added the same to the total income of the assessee which was, in turn, deleted by the Ld. CIT(A) - HELD THAT:- Except numerical differences in the absence of any changed circumstances we do not find any reason in interfering with the order passed by the Ld. CIT(A) in deciding the issue in favour of the assessee by holding the assessee is not in default under Section 201(1) of the Act and further that the provision of Section 40(a)(ia) of the Act will not be applicable in respect of the freight charges in the present facts and circumstances of the case. As passed in the case of DCIT Bharuch vs. Hasmukh J. Patel,[2011 (3) TMI 353 - ITAT, AHMEDABAD]wherein the identical facts, where the parties acted as agent of non-resident shipping companies and such payment in foreign currency to such non-resident shipping company duly permitted by RBI guide line in view of the special provision as provided under Section 172 of the Act we hold that in that case TDS deduction is not required under Section 194C of the Act and, thus, provision of Section 40(a)(ia) is not applicable to the facts and circumstances of the case in hand. Claim of depreciation on car, insurance on car and interest for the loan taken for purchase of the car, petrol expenses and repairing expenses related to the car - HELD THAT:- It is the case of the assessee that the car is reflected as an asset in the balance sheet of the company and the car loan also appears as a liability in the balance sheet of the company - the company has passed a resolution for registration of the said car in the name of the director but the company has domination over the said car and the same is used wholly and exclusively for the business of the company. This plea of the assessee has found to be confronted by the DR but he failed to bring any decision in his favour. Heard the parties and perused the records. It is the settled principle of law that though cars are brought by a company the name of its director, the company is eligible for claiming depreciation on the same. CIT(A) deleted additions made in respect of “Interest and “Insurance ” - addition in respect of “Depreciation and “car expense has been partly deleted to extent of 75% i.e. 25% which according to us is unambiguous taking into consideration of the assesses books of accounts maintained in regard to the said asset as it appears from the records and thus we uphold the same. Hence, this ground of appeal preferred by the Revenue is dismissed. Addition on account of under-invoicing of sales to sister concern - HELD THAT:- The assessee are duly audited all books of accounts. After taking into consideration the entire aspect of the matter, we find the CIT(A) has rightly deleted the impugned disallowance. Hence, in the absence of any merit, we dismiss the ground raised by the Revenue.
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