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TMI Blog2018 (11) TMI 1485X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has not filed detail of any such material if the recipient of interest in question accounted for the interest received in their account and paid due liabilities of the income-tax, but taking the contentions raised by assessee on its face value as all the companies except two are well-known NBFC, the issue in question is remanded back to the AO to verify the contentions raised by the assessee and in case, he is satisfied that the concerned NBFCs have included this income in computation of their income offered to tax, then it would be deemed to comply with the provisions contained u/s 40(a)(ia). In case NBFCs are found to have shown the interest received in their books of account and paid due liabilities of the income-tax for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es engaged in the business of financing business and are in the nature of financial institutions. Further Assessee company has paid interest to well known finance companies as shown in the order passed by the A.O. We are assuming that those said companies filed their returns on regular basis. Once the said companies have shown the interest received in their books of account and paid liabilities of income tax as calculated, then there is no question of disallowance as made by the Assessing Officer. 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : The assessee is into the business of trading of chemicals specially construction chemical raw material and is also into trading of polyester film ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the companies are well-known finance companies engaged in the business of financing and as such are financial institutions. It is the case of the assessee that interest was paid to well-known finance companies who are NBFCs except two companies. 6. It is contended by ld. AR for the assessee that it is understandable that the said companies have filed their returns on regular basis and have shown the interest received in their books of account and paid due liabilities of income-tax and in such circumstances, no disallowance can be made and relied upon the cases of coordinate Benches of the Tribunal in Shri Azmath Ulla vs. ACIT ITA No.144/Bang/2017 dated 07.06.2017 and ITO vs. Dr. Jaideep Kumar Sharma (2014) 52 taxmann.com 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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