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2015 (5) TMI 743 - AT - Income TaxDisallowance of dividend / interest paid to chit subscribers due to non deduction of TDS - Disallowane of expenses on collection of subscription for other group companies - Disallowance of expenses - Additional evidence put before tribunal for consideration by assessee - Held that:- We find that this issue has been decided by the ITAT in the assessee’s own case [2015 (4) TMI 938 - ITAT HYDERABAD] for A.Y. 2005-06 dated 24th September, 2014 wherein it has been held that the issue involved in the appeal of the Revenue is squarely covered in favour of the assessee by the decision of the coordinate bench of this Tribunal in assessee’s own case [2012 (2) TMI 468 - ITAT HYDERABAD] for assessment year 2008-09 rendered vide order dated 24.2.2012, wherein a similar disallowance made by the Assessing Officer was held to be unsustainable, following the decision of the Madras high Court in the case of Bilahari investments (P)Ltd. [2006 (6) TMI 59 - MADRAS HIGH COURT], wherein it was held that the dividend distributed by the assessee did not part-take the character of interest and consequently, the assessee was not liable to deduct tax at source. Disallowance of expenses - We do not find any infirmity in the CIT (A)’s disallowing meager expenditure of ₹ 2.00 lakhs only, as a very little expenses would be actually deployed for collection of subscription from other group companies. Collection was done as minor additional work along with their regular employment. We confirm the order of the CIT (A) on this issue. Additional evidence - We admit the additional evidence as the same substantiated the merits of the case and the evidence goes to the root of the issue, relying on the decision of the Hon'ble Bombay High Court in the case of Smt. Prabhavati S. Shah [1998 (2) TMI 107 - BOMBAY High Court] and Abhay Kumar Shroff [1997 (6) TMI 75 - ITAT PATNA]. We set aside the issue to the file of the AO to consider the additional evidence and re-decide the issue in accordance with law. - Appeal filed by the Revenue is dismissed and the appeal of the assessee is allowed for statistical purposes.
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