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2021 (9) TMI 528 - ITAT JAIPURAddition u/s 40(a)(ia) - Disallowance of interest paid on account of non deduction of TDS - Scope of second proviso to Section 40(a)(ia) of the Act inserted by the Finance Act 2012 w.e.f. 01/04/2013 - assessee could not place on record any documentary evidence in order to demonstrate that the interest paid by the assessee has been shown by the NBFCs as income in the return of income, therefore, the claim was of the assessee was rejected - application of assessee admitting the documents as additional evidences - HELD THAT:- Keeping in view the settled legal proposition, we are also of the view that second proviso to Section 40(a)(ia) of the Act has retrospective effect. In the present case, the disallowance u/s 40(a)(ia) of the Act was made on account of the fact that the assessee could not place on record any documentary evidence in order to demonstrate that the interest paid by the assessee has been shown by the NBFCs as income in the return of income, therefore, the claim was of the assessee was rejected. During the pendency of present appeal, in order to support his contention, the assessee has moved an application under Rule 29 of the ITAT Rules, 1963 for placing on record the documents by way of additional evidences vide application dated 01/4/2021. The additional evidences submitted by the assessee at this stage are the first time and are necessary for deciding the appeal, therefore, considering the totality of facts and circumstances of the case as well as law prevailing in this regard, we admit the additional evidences filed by the assessee. Though we have restored the matter back to the file of the A.O. for reconsideration - we further direct the assessee to submit required documents in respect of both the NBFCs i.e. Barclays Investment & Loan (India) Ltd. and Future Capital relating to the year under consideration and further the A.O. is also directed that being the adjudicator as well as investigator, the A.O. should invoke necessary provisions of the Income Tax Act for calling the records from the concerned NBFCs i.e. i.e. Barclays Investment & Loan (India) Ltd. and Future Capital to ascertain that the amount paid by the assessee has been included as income in their total taxable income and if from the documents, the A.O. is satisfied regarding inclusion of the said amount paid by the assessee as income in the records of respected payees then in that eventuality, the A.O. is directed to delete the additions - Appeal of the assessee is allowed for statistical purposes only.
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