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TMI Blog2013 (12) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the non-resident from the indirect transfer of 49% share in the India Company, embedded in the sale consideration for acquisition of 100% shares of the foreign company and thereby directing the Assessing Officer not to treat the assessee in default under section 195 of the Act read with sections 201(1) and 201(1A) of the Act. 3. Briefly stated the facts of the case are that the assessee is a resident Indian company which was incorporated in 1955 as Tata Press Limited. The assessee acquired 100% stake in a company called M/s. Keyword Group Limited, a U.K. based publishing company. Equity shares of Keyword Group Limited were held by two U.K. resident citizens, namely, Mr. Alan Rodwell (700 shares holding to 70% stake) and Mr. Stephen Jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that the primary motive for acquisition of Keyword Group Limited was acquisition of shares of Cepha Imaging Private Limited. The A.O. also called for the balance sheet of Keyword Group Limited and noticed that it was incurring heavy losses. But for the investments held in Cepha Imaging Private Limited, the business of Keyword Group Limited was found to be loss making and liability imposing. In this background of facts, the A.O. reached the conclusion that the assessee acquired the shares of Keyword Group Limited mainly to acquire the stake in Cepha Imaging Private Limited. In the order passed u/s 201 read with section 195, the Assessing Officer held that since the assessee-company failed to deduct tax at source from income chargeable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. From the paper book filed before us consisting of 73 pages, it is manifest that the assessee has clearly mentioned that all these documents were submitted before the learned CIT(A) only. As it is patent that the learned CIT(A) entertained additional evidence and deleted the liability of deducting tax at source by relying on such additional evidence without confronting it to the Assessing Officer, we are of the considered opinion that his order cannot be sustained. We, therefore, set aside the impugned order and remit the matter to the file of A.O. for deciding the issue afresh as per law after allowing a reasonable opportunity of being heard to the assessee. Needless to say the assessee will be at liberty to lead any fresh evidence in i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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