TMI Blog2019 (3) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... unt in their Return of Income and has paid tax due on the income declared in the Return of Income, and fulfils the conditions stipulated u/s. 200 of the Act, then no disallowance u/s. 40(a)(ia) of the Act is warranted. Needless to say, the AO may call for the aforesaid details from the payees in case it is found necessary. So, we set aside the order of Ld. CIT(A) and remand the matter back to AO for fresh adjudication as directed above. - Appeal of assessee are allowed for statistical purposes. Deemed dividend addition u/s 2(22)(e) - HELD THAT:- We note that assessee firm is not a shareholder of M/s. Modern Solaurum Pvt. Ltd. So, sec. 2(22)(e) of the Act is not attracted against the assessee firm and so the impugned addition invoking sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 194C of the Act did not entail any liability for disallowance u/s. 40(a)(ia) of the Act. 4. Briefly stated facts are that during the assessment proceedings the AO noticed that the assessee had paid freight charges of ₹ 1,66,367/- and ₹ 7,73,864/- to M/s. Jet Airways and M/s. Air India respectively without deduction of tax. The AO required the assessee to explain as to why payments have been made without TDS. In reply, the assessee stated that TDS has not been deducted on air freight charges paid in Mumbai since the provider has made available the PAN to the assessee and according to assessee since the PAN having been made available there was no liability to deduct tax under the provision of Sec. 194C of the Income-tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside the order of Ld. CIT(A) and remand the matter back to AO for fresh adjudication as directed above. Both these grounds of appeal of assessee are allowed for statistical purposes. 6. Ground no. 4 of assessee s appeal is against the action of Ld. CIT(A) in confirming ₹ 89,930/- made by AO applying section 2(22)(3) of the Act. 7. The facts of the case as noted by the AO in the assessment order are that - In the instant case, Ripple P Doshi had 33.2% holding in M/s. Modern Solarum Pvt. Ltd. and had 25% share of profit in M/s. Modern Impex. Thus, the assessee satisfies the conditions of any concern in which such shareholder is a member and in which he has a substantial interest mentioned in section 2(22)(e) of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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