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TMI Blog2017 (9) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... amount paid by payer in its return of income - Held that:- As payee has included the amount of interest so paid by assessee in its return of income and tax due there on has been paid then there is no need to make any disallowance for non deduction of TDS on interest u/s 40(a)(ia) . See CIT vs Ansal Land Mark Townships Pvt. Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] - Decided in favor of assessee. - I.T.A.No.2410/Del/2015 - - - Dated:- 31-8-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee : Sh. Salil Aggarwal, Adv. Department : S h. T. Vasanthan, Sr. DR ORDER This appeal by the Assessee is directed against the Order dated 18.2.2015 of the Ld. CIT(A)-XX, New Delhi pertaining to assessment year 2010-11 on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said payment of interest had no nexus with the purchase of machinery and as such, the disallowance so made should have been deleted. 3 That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in sustaining a disallowance of ₹ 25, 33, 675/- under section 40(a)(ia) of the Act, on account of non - deduction of TDS on payment of interest being M/s L T Finance Ltd. 3.1 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate the basic fact that the said payment of interest amounting to ₹ 25,33,675/- was duly accounted as income by M/s L T Finance Ltd. and due taxes were paid by M/s L T Finance Ltd. on the same and in order to substantiate the said fact, confirmation f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons. Against the aforesaid assessment order, the assessee filed the appeal before the Ld. CIT(A), who vide its impugned order dated 18.2.2015 has dismissed the appeal of assessee firm. Aggrieved with the impugned order, the assessee is in appeal before the Tribunal. 3. During the hearing, learned counsel for assessee Sh. Salil Aggarwal Advocate argued the matter in detail with respect to all the grounds, except the ground no. 2 to 2.1, so raised in the memo of appeal and furnished following written submissions: (a) That with respect to ground nos. 1 to 1.2, it is submitted that the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in sustaining, a disallowance of a sum of ₹ 4, 50, 982/- on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs Ansal Land Mark Townships Pvt. Ltd. reported in 377 ITR 635 on the proposition that once the payee has included the amount paid by payer in its return of income and paid taxes on the same, then the payer cannot be said to be in default and thus, no disallowance be made under section 40(a)(ia) of the Act . 4. On the contrary, the learned Sr. DR, Sh. T. Vasantha, relied upon the orders of lower authorities and reiterated the findings recorded by the lower authorities. 5. I have heard both the parties and perused the records available with me. With regard to ground nos. 1 to 1.2 are concerned, I find that one of the partner of the assessee firm went abroad to purchase a machine for the purposes of business and the same was subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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