THE DCIT, TDS CIRCLE, AHMEDABAD vs. M/S. J.P. ISCON LTD. (FORMERLY KNOWN AS J.P.INFRASTRUCTURE LTD., AHMEDABAD

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ITA 220/AHD/2015Status: DisposedITAT Ahmedabad07 February 2022AY 2007-0815 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that TDS under Section 194 is not required to be deducted when loans are advanced to a concern in which a shareholder of the assessee company is a member and has substantial interest, if the payee is not a registered shareholder. The order of the CIT(A) was upheld.

What were the facts?

The assessee company advanced inter-corporate deposits to six subsidiary companies. The Revenue treated these loans as deemed dividend under Section 2(22)(e) and demanded TDS under Section 194. The CIT(A) deleted the addition, holding that the payee companies were not registered shareholders of the appellant.

What were the issues?

Whether inter-corporate deposits to subsidiary companies, where common directors are shareholders, constitute deemed dividend requiring TDS under Section 194. Whether TDS is applicable when the payee is not a registered shareholder of the payer company.

Which sections of the Income-tax Act were involved?

Section 2(22)(e),Section 194,Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED&

For Appellant: Smt. Nupur Shah, AR
For Respondent: Shri Mohd. Usman, CIT DR & Shri, DR Assessee by : Smt. Nupur Shah, AR
Hearing: 18.11.2021Pronounced: 07.02.2022

Heard together (4 matters)

I.T.A. No. 220/Ahd/2015
C.O. No. 24/Ahd/2016
I.T.A. No. 421/Ahd/2017
C.O. No. 54/Ahd/2017

Read from the judgment's own cause title. This page is filed under one of them.

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)- 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,

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