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2015 (10) TMI 2573

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..... s. Bloomberg was made for subscription to e-magazines and therefore, there is no occasion to deduct tax under the Act cannot be said to be perverse or arbitrary. Deemed dividend addition u/s 2(22) - Held that:- Issue arising herein stands covered against the Revenue and in favour of the respondent-assessee by the decision of this court in CIT v. Impact Containers P. Ltd [2014 (9) TMI 88 - BOMBAY HIGH COURT] as deeming provision of section 2(22)(e) of the Income-tax Act cannot be applied to an assessee company as the assessee-company is not a shareholder of the company that advanced loan to the assessee-company even though there was a common shareholder holding substantial interest on both the companies Appeal admitted on question 1 .....

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..... as purchase of goodwill or any commercial right from the said Ashmavir Financial Consultants ? (B) Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the disallowance made by the Assessing Officer under section 40(a)(ia) of expenditure incurred by the assessee-company towards payment of data charges to Bloomberg even though the assessee company had not deducted tax at source on such payment made to avail professional services ? (C) Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in holding that the deeming provision of section 2(22)(e) of the Income-tax Act cannot be applied to an assessee company as the assessee-company is not a s .....

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..... submits that as a consequence of the payment made to Bloomberg the respondent-assessee is able to obtain a detailed analysis by experts and information on various industries. This would have a direct impact as the business of the respondent-assessee. Thus, it cannot be considered to be in the nature of subscription for e-magazines and therefore, payment made has to be considered as payment made for receipt of professional/consultative advices. Thus liable to deduction of tax at source under section 195. (d) We find that both the Commissioner of Income-tax (Appeals) as well as the Tribunal have reached a concurrent finding of fact that payments made to M/s. Bloomberg was made for subscription to e-magazines and therefore, there is no occa .....

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