9911796707
TMI Blog2013 (1) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions - Thus AO cannot levy interest u/s.201(IA) - Decided in favor of assessee Interest income on loans advanced by the assessee to M/s. Adarsh Developers (P) Ltd - Held that:- As per the agreement a coupon rate of 4% p.a for he first quarter was decided - Such interest is subject to TDS - The borrower co. invested the amount in share capital of another co. - the assessee co. has not derived any interest from M/s Adarsh Developers Pvt. Ltd and no interest has been provided in its books - the order of CIT is to be setaside - decided in favor of assessee Disallowance of ₹ 5,35,748/- as factory maintenance - Held that:- assessee acquired a property in auction - incurred expenditure of ₹ 5,35,000 as maintenance of plant an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in respect of payment of ₹ 1,83,176 of Professional Charges and payment of ₹ 9,71,452/- of Interest charges there was no proof of deduction of payment of TDS. Therefore CIT held that this attracted the provision of Section 201(IA) under which interest was required to be levied. The CIT found that in respect of Professional Charges the assessee had deducted tax at source at ₹ 8,968/- and paid the same into Government Account on 20.11.06. Further he held that the tax to be deducted at source is ₹ 15,000/- and not ₹ 8,968/- as made by the assessee. Similalrly in respect of interest liability also AO had not levied interest u/s 201(1A). In the circumstances he directed that interest u/s.201(IA) be levied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... velopers (P) Ltd wherein the amounts given by way of unsecured loans shall carry a coupon rate of 4% per annum for the first quarter of the investment and thereafter the company will reset the same to such higher level as may be mutually agreed among the shareholders. Such interest shall be payable to the investor either annually or cumulatively at the time of repayment of loan. Such interest payments will be subject to TDS. The CIT felt that when the agreement provides for coupon rate @ 4% the Assessing Officer should have examined the issue further. 8. Before, the learned counsel for the assessee submitted that by virtue of an agreement dated 19th March, 2005 entered into by the company, M/s Adarsh Developers Pvt. Ltd. and its Promoter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbassy Real Estate Properties and Holdings Pvt. Ltd. (formerly Adarsh Developers Pvt. Ltd.) and its Promoters, the company was entitled to take up 8.33% direct shareholding in Saphire in lieu of its 25% shareholding in Adarsh. It is submitted that by virtue of the said agreement and in order to enable the company to hold 8.33% shareholding in Saphire, the company was to relinquish the unsecured loan of ₹ 23,50,000 advanced by it to Embassy and also sell the 5,00,000 equity shares of Embassy held by it to the Promoters of Embassy or their nominees. 11. After hearing both the parties and perusing the record, we find that the company s entire unsecured loan to Embassy got converted into share capital of Saphire all by virtue of the af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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