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TMI Blog2018 (10) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts narrated in ITA No.103 of 2017 are being extracted. 2. The appellant has filed appeal under Section 260A of the Income Tax Act, 1961 (for brevity 'the Act') against the order of Income Tax Appellate Tribunal, Chandigarh (hereinafter referred to as 'the Tribunal') passed in ITA No. 761/CHD/2015, dated 21.06.2016. 3. Appellant claims that following substantial questions of law arise for consideration in the present appeal:- "A) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is justified in rejecting the appeal of appellant thereby confirming disallowance/addition of Rs. 16,88,163/- without granting sufficient opportunity of hearing to the appellant by grossly violatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, vide order dated 16.12.2013, disallowed under 40(a)(ia) of the Act the expenses claimed of interest paid of Rs. 13,78,291/- to M/s Bajaj Finance Ltd. and Rs. 3,09,872/- paid to M/s Sabsons Agency Pvt. Ltd. 6. Being aggrieved of the order, an appeal was filed before Commissioner of Income Tax (Appeals) [CIT(A)]. In appeal, the challenge was made against the disallowance of the expenses and also to the action of Assessing Officer making addition of Rs. 15,000/- holding the portion of expenses as personal expenses. CIT(A) vide order dated 01.06.2015 partly allowed the appeal. Disallowance of expenses was upheld but the addition made of Rs. 15,000/- was set aside. 7. Further, appeal was filed before the Tribunal. Appeal was fixed for heari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the remand has also been placed on record in which the earlier expenses disallowed under Section 40(a)(ia) of the Act have been allowed. 11. Learned counsel for the appellant argued that the Tribunal erred in dismissing the appeal without affording sufficient opportunity to the appellant to substantiate that the appellant was not an assessee in default and that the case of the appellant would be covered under second proviso to Section 40(a)(ia) of the Act. 12. He further contended that the certificates have already been placed before this Court to establish that the payment of interest made by the appellant on which there was failure to deduct TDS, have been credited by the payee in its Profit & Loss account and has filed his income tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012:- Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident- (i) has furnished his return of income under Section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed. 17. First proviso to Section 201 stipulates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are in agreement with the view of the Delhi High Court in Ansal Land Mark Township Pvt. Limited's case (supra) approving the reasoning of the Agra Bench of the ITAT whereby holding the rationale behind the insertion of the second Proviso to Section 40(a)(ia) of the Act and that it is merely declaratory and curative and thus, applicable retrospectively with effect from Ist April, 2005." 20. In the facts of the present case and in view of the additional evidence adduced in this Court without expressing any opinion on the merits of the case, the matter is remanded back to the Assessing Officer to decide the issue of disallowance of expenses under Section 40(a)(ia) afresh after hearing the appellant and after considering the evidence produced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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