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TMI Blog2019 (8) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... e recipient has offered the income to tax in his hands and therefore, the proviso to section 201(1) applies and the assessee cannot be deemed to be an assessee in default. Admittedly, the assessee has not been treated as an assessee in default u/s 201(1) and the proviso to section 201(1) has been held to be retrospectively applicable. Therefore disallowance u/s 40(a)(ia) cannot be made subject to verification that the recipient has offered the income to tax in its hands. Thus, the ground is allowed for statistical purposes. Addition u/s 14A r.w.Rule 8D - HELD THAT:- This issue is covered in favour of the assessee by the decision of the various Courts particularly the Hon'ble Delhi High Court in the case of Cheminvest Limited vs Commissioner Of Income Tax-Vi [2015 (9) TMI 238 - DELHI HIGH COURT] and also the decisions of the Coordinate Benches of this Tribunal to which I am also a signatory. Respectfully following the same, I delete the disallowance made u/s 14A of the Act. Payment of ESI and PF on account of disallowance u/s 36(1)(va) i.e. employees contribution - HELD THAT:- Assessee has made the payment before filing of the return of income and as held the disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same were paid within the due dates of filling the return of income u/ s.139(1) of the Act. 9. The Ld. CIT(A) ought to have appreciate the fact that contributions towards ESI and PF which were paid before the due date for filling of the return of income are allowable as deduction u/s.43B of the Act, as held by number of Hon. Court and Tribunals. Addition of ₹ 5,19,805/- towards disallowance of interest payments U/S 40(a)(ia) of the Act. 10. The Ld. CIT (A) erred in dismissing the appeal of the appellant on the issue of addition of ₹ 5,19,805/ - towards disallowance of payment of interest u/s.40(a)(ia) of the LT. Act,1961, without considering the facts of the case, legal decisions on the issue and the details and evidence furnished by the appellant. 11. The Ld. CIT (A) ought to have appreciated the fact that the provisions of Sec 40a(ia) are not applicable in respect of the payments towards interest by the appellant since the same were paid and no amounts remained payable at the end of the relevant year. 12. The Ld. CIT (A) ought to have appreciated the fact that the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) ought to have appreciated the fact that the AO has made mistakes in application of Rule 8D of I'I' Rules while computing disallowance u/ s 14A of the Act. General: 22. Though some grounds were not taken up before the lower authorities, they Lo' are now taken before the Hon'ble ITAT, in view of the supreme court decision in the case of NTPC Vs CIT (229 ITR 383). 23. The appellant may add or alter or amend or modify or substitute or delete and/ or rescind all or any of the grounds of appeal at any time before or during the course of hearing of appeal . 2. Further, the assessee has filed a letter dated 4.6.2019 seeking admission of additional grounds which are already raised as Ground.No.6 and 12 to 14 on the ground that they relate to question of law arising from the facts of the case which are already on record. 3. In support of the above contentions, the learned Counsel for the assessee placed reliance on the decision of the Hon'ble Supreme Court of India in the case of NTPC vs. CIT (229 ITR 383) (SC). 4. Both the parties were heard and since the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the provisions of section 40(a)(ia) are not applicable. In support of his contention, he placed reliance upon the following case law. i) ITA No.663 664/Hyd/2016 in the case of Sri Azmath Ulla ii) ITA No.1319/Hyd/2014 in the case of M/s. Aditya Constructions Company India P Ltd iii) ITA No.249/Hyd/2013 in the case of M/s. AGA Publications Ltd. iv) ITA No.488 621/Hyd/2013 in the case of Visu International Ltd. 10. He submitted that the recipients also have offered the receipts as income in their hands and therefore, provisions of section 40(a)(ia) are not applicable. 11. The learned DR, on the other hand, supported the orders of the authorities below. 12. Having regard to the rival contentions and the material on record, I find that w.e.f. 1.4.2013, 2nd proviso has been appended to section 40(a)(ia) according to which where an assessee is not deemed to be an assessee in default under the 1st proviso to sub-section 1 of section 201, it shall be deemed that the assessee has deducted and paid tax on such sum on the date of furnishing of such income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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