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Issues Involved:
Department's appeal against CIT(A) order regarding deletion of demand raised u/s. 201(1) and 201(1A) of the Act for A.Ys. 2006-07 & 2007-08. The Assessing Officer added deemed dividend amounts in the hands of SRPL and Mr. Vikas Oberio u/s. 2(22)(e) of the Act due to non-deduction of tax, leading to proceedings u/s 201(1)/201(1A) with tax liabilities and interest. The total demand raised was significant. The CIT(A) deleted the additions made by the Assessing Officer, ruling that the payments were share application money and not deemed dividends, hence section 194 was not applicable. Consequently, the demand u/s. 201(1)/201(1A) was deemed unjustified and was deleted. During the hearing, the Departmental Representative supported the Assessing Officer's orders, while the AR argued that the amounts were correctly treated as share application money, with the Tribunal also upholding the deletion of deemed dividends. The non-applicability of section 194 was emphasized. After considering the submissions and facts of the case, the ITAT upheld the CIT(A)'s orders for both assessment years, rejecting the department's grounds of appeal. Consequently, both appeals by the department for A.Y. 2006-07 & 2007-08 were dismissed. The judgment was pronounced on the 6th day of September, 2013.
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