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TMI Blog2024 (7) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... 01(1)/201(1A) of the Act shows that the AO has passed an order purely on surmises and conjectures changing the nature of transaction of sale of shares to sale of assets . AO in proceedings u/s. 201 of the Act has gone beyond his jurisdiction in re- characterizing nature of transaction. Further it is an undisputed fact that the assessee has deducted tax at source @10% plus surcharge on consideration paid for purchase of shares and has deposited the TDS to the Government exchequer. Thus, in light of undisputed facts the assessee cannot be held as assessee in default . We find no infirmity in the impugned order; hence, the same is upheld. Decided against revenue. - Shri Vikas Awasthy, Judicial Member And Shri Naveen Chandra, Accountant Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in allowing the appeal of the assessee by holding that re-characterization of nature of income by the AO is incorrect without appreciating the fact that transactions in the garb of shares is actually the transfer of proportionate value of underlying assets as Net Asset Value of company whose shares have been transacted is negative and there exists no commercial rationale to attribute the value of shares of the said company at such a high price. (iii) Whether on the facts and circumstances of the case the Ld. CIT(A) has erred in allowing the appeal of the assessee by holding that the assessee is not 'assessee in default' as it had rightly effected the applicable TDS on the long term capital gain arising in the hands of the selle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is actually a transaction of purchase of assets of UME India Pvt. Ltd. and asked the assessee to show cause as to why the capital gains should not be taxed as short term capital gains. The AO vide order dated 12.11.2021 passed u/s. 201(1)/201(1)(A) of the Act held the assessee as assessee in default for non deduction of tax at source. 5. Aggrieved by the aforesaid assessment order, the assessee carried the issue in appeal before the CIT(A). The CIT(A) vide impugned order deleted the addition holding that the action of the TDS Officer is not correct in re-characterizing the nature of transaction from sale of shares to sale of assets . The CIT(A) has further recorded a finding of fact that the assessee has deducted and deposited TDS @11.53% o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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