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TMI Blog2015 (6) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... count of non deduction of TDS on payments made against printing and processing work." 3. Learned DR submitted that the CIT(A) has not called for any remand report in this case and therefore, the order of the CIT(A) is not sustainable. She submitted that information was gathered that M/s Print-O-Pack Ltd. has raised bills and copy thereof shows that they were raised for printing and processing work undertaken by the said party. The assessee has failed to make any TDS out of the amount paid to the said party and therefore, the provisions of Section 40(a)(ia) of the Income-tax Act, 1961 were rightly applicable to the facts of the case of the assessee. She submitted that the work done by the said party was in the nature of job work and not in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ob work or printing charges and in the case of the assessee, it was purchase of magazines and promotional forms and therefore, there was no question of deducting TDS. There being no mistake in the order of the learned CIT(A) on this issue, the same is confirmed and ground No.1 of the Revenue's appeal is dismissed. 6. Ground No.2 of the Revenue's appeal is as under:- "On the facts and in the circumstances of the case and law, the ld.CIT(A) has erred in deleting the addition of Rs. 7,34,316/- made u/s 40(a)(ia) of the Act on account of non deduction of TDS on payments made against packing and forwarding charges while accepting additional evidences." 7. Learned DR submitted that the CIT(A) has accepted the additional evidence in con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een that the assessee has purchased poly shrink and polythene bags from M/s Allied Plast, board from Chandra Shekhar (Puraney Dabbey Waley) and Bale Hessien Cloth from Ghanshyam Jute Trading Co. He has recorded a finding that these items are purchases of packing and forwarding material and not the payment for packing and forwarding as observed by the Assessing Officer and therefore, are not covered under the provisions of Section 194C of the Act. In these facts of the case, we are of the view that since the payments were made for purchase of packing and forwarding material, the provision of Section 194C was inapplicable and therefore, no disallowance under Section 40(a)(ia) of the Act could be made. Accordingly, the order of CIT(A) on this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written off by the assessee, the balance amounts exceeding Rs. 20,000/- are addable due to no evidence whatsoever produced by the assessee to show that these were genuine items of bad debts written off by the assessee, the details whereof are as under:- Sl.No. Name of Party Amount 1. Vijayalaxmi Publishers (Chennai) 24,358.00 2. The Corner Book Store (Delhi) 47,838.00 3. Security Deposits 27,749.00 4. Popular Book Distributors (Trivendrum) 71,694.00 5. Pen Books Pvt.Ltd. (Aluva) 26,166.00 6. Osho Time Centre (Rajkot) 24,548.00 7. English Edition Publishers & Distt. (Mumbai)(4/n) 5,80,601.00 8. Circle News Agency (Ghaziabad) 94 24,067.00 9. Children Book Centre Pvt.Ltd. (Patna)(1/a) 67,055.00 10. Balaji Book D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable in the case of the assessee as it is well settled that deemed dividend can be assessed only in the hands of a person who is a shareholder of the lender company and not in the hands of a person other than a shareholder. The issue is covered in favour of the assessee by the decision of Mumbai Bench of the Tribunal in the case of ACIT Vs. Bhaumik Colors Pvt.Ltd. - 27 SOT 270 (Bom) . The CIT(A) has decided the issue correctly in favour of the assessee and accordingly, the order of the CIT(A) on this issue is confirmed and ground No.4 of the Revenue's appeal is dismissed.
19. In the result, the appeal of the Revenue is partly allowed.
(Decision pronounced in the open Court on 4.03.2015) X X X X Extracts X X X X X X X X Extracts X X X X
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