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2015 (6) TMI 881 - AT - Income TaxApplicability of TDS provisions in respect of the advances held as deemed dividends by the AO u/s 2(22)(e) - whether future adjustment of advances for trade and processing charges does not alter the character of the advances so as to treat the same as deemed dividend? - Held that:- As decided in assessee's own case [2012 (8) TMI 708 - ITAT, HYDERABAD] as far as trade advances are concerned, there is no question of applicability of the provisions of S.194, and consequently, applicability of provisions of S.201(1) and S.201(1)(1A) does not arises. As for the other advances as well, it is held that it is only where the payee in relation to the payments in question is a share-holder, such payments may attract the provisions of S.2(22)(e), and consequently liability to TDS u/s 194. Therefore, Section 194 does not require TDS when payment is made to a non-shareholder. See ANZ Reality Pvt. Ltd. V/s. ITO(2008 (10) TMI 268 - ITAT JAIPUR-B) – Decided in favor of assessee.
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