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TMI Blog2014 (1) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... - Held that:- There was force in the assessee that the tax would be deductible only on the interest part and the liability can be fastened to that extent – thus, the AO is directed to verify the claim of the assessee with regard to the deduction of tax and also direct to compute the liability of the assessee to the extent of interest paid by the assessee – Decided partly in favour of Assessee. - ITA 38/Ahd/2011, 39/Ahd/2011, 40/Ahd/2011, CO No.45/Ahd/2011, CO No.46/Ahd/2011 - - - Dated:- 25-10-2013 - Shri A. Mohan Alankamony And Shri Kul Bharat,JJ. For the Petitioner : Shri K. C. Mathews, Sr. DR For the Respondent : Shri R. N. Vepari, A. R. ORDER Per Bench : These three appeals by the Revenue are directed against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated facts are that a survey u/s.133A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was conducted at the office premise of the assessee on 21/07/2009. During the course of survey, it was noticed that the assessee has not deducted TDS on the interest paid to TML Finance Ltd. on loan taken for the purchase of earth moving machine. Similarly, it was also noticed by the AO that the assessee had deducted TDS u/s.194-C of the Act on the payment made to hirer of JCB machine utilized for earth digging purpose. As per AO, these payments amounts to rent payment on which TDS should have been deducted as per provisions of section 194-I of the Act. During the proceedings before the AO, the assessee made various submissions but wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord and gone through the orders of the authorities below. We find that the ld.CIT(A) has given a finding on fact that all the parties have filed their returns of income and paid their taxes due as applicable. The assessee's case is duly covered by the CBDT Circular and the judgement of Hon'ble Apex Court rendered in the case of Hindustan Cocoa-cola Beverage (P)Ltd.(supra). The Revenue could not controvert the finding of the ld.CIT(A) by placing any relevant material on record, therefore in our considered view, we do not find any infirmity in the order of the ld.CIT(A) as he has rightly followed the judgement of Hon'ble Apex Court rendered in the case of Hindustan Coca-cola Beverage (P) Ltd.(supra), the same is hereby upheld. Therefore, gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of interest paid by the assessee. Therefore, this ground of the assessee's cross-objection is partly allowed but for statistical purposes. 8. As a result, assessee's cross-objection, i.e. CO No.45/Ahd/2011 (in ITA No.38/Ahd/2011) is partly allowed for statistical purposes only. 9. Lastly, we take up the remaining two Revenue's appeals, i.e. ITA Nos.39 40/Ahd/2011 (AYs 2009-10 2010-11 respectively) and assessee's Cross Objection No.46/Ahd/2011 for AY 2009-10 (in ITA No.39/Ahd/2011), wherein following common grounds have been raised by the parties:- ITA No.39/Ahd/2011 for AY 2009-10 (by Revenue) 1. The Ld.CIT(A) has erred in law as well as facts of the case in deleting the order passed u/s.201(1) interest charged u/s.201( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any ground or add a new ground, which may be necessary. 6. It is, therefore, prayed that the order of the Ld.CIT(A) may be cancelled and that of the Assessing Officer may be restored to the above effect. CO No.46/Ahd/2011 (by Assessee) (1) On the facts and circumstances of the case and as per law, the learned Commissioner of Income-tax(Appeals) erred in confirming charge of tax as interest u/s.201(1) and 201(1A) of the Act, in respect of payment of interest to TML Finance Limited. (2) The appellant craves leave to add, alter or vary any of the grounds of appeal. 10. So far the ground Nos.1 2 in Revenue's appeals for AYs 2009-10 and 2010-11 are concerned, since the facts and circumstances are similar to the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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