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TMI Blog2019 (10) TMI 1076X X X X Extracts X X X X X X X X Extracts X X X X ..... yees have included aforesaid amounts paid by the assessee in return of income filed with Revenue as their income and paid due taxes to the Credit of Central Government. CIT(A) is directed to verify these evidences/certificates and accordingly adjudicate the issue on merits in accordance with law , keeping in view ratio of decision of Hon ble Delhi High Court in the case of Ansal Land Mark Township [ 2015 (9) TMI 79 - DELHI HIGH COURT] and Hindustan Coca Cola [ 2007 (8) TMI 12 - SUPREME COURT] X X X X Extracts X X X X X X X X Extracts X X X X ..... ts that the vehicle maintenance expenses are normal repairs and maintenance expenses and there are no contract as such entered into by the appellant with the persons carrying the repairs and therefore the provisions of section 194C has no application and the appellant is not required to deduct any TDS on such vehicle maintenance expenses. The disallowance made by the assessing officer is therefore liable to be deleted. 9. The appellant therefore prays that the disallowance made u/s.40(a)(ia) on interest paid to NBFCs (₹ 53,18,606), payments to other travels (₹ 1,06,20,450), auditors (₹ 2,01,677) and on vehicle maintenance expenses (₹ 57,84,247) may be deleted and render justice. In ITA No.1791/Chny/2018 for the AY 2014-15: The appellant submit the following grounds of appeal in addition to various others which will be put forth at the time of hearing:- 1. The authorities below erred in disallowing ₹ 57,64,891/- being interest paid to Non banking financial institutions (NBF) under section 40(a)(ia) for want of TDS. 2. The appellant submits that these non banking financial institutions are reputed companies who would have discharged their tax o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of travel agency running and plying buses to various routes for picking and dropping of their employees for various organizations and companies on contract basis. The assessee had made payments towards interest to the tune of ₹ 76,15,294/- during previous year relevant to ay: 2013-14 to various financial institutions and banks on vehicle hire purchase loans availed by it for carrying out its business. The total amount borrowed towards vehicle hire purchase loans was to the tune of ₹ 6,09,97,869/-, and the assessee had paid interest to the tune of ₹ 53,18,606/- to various financial institutions during previous year relevant to ay: 2013- 14, as detailed below: Name of the Financial Institutions Amount Borrowed Closing balance as on 31.03.2013 Amount of Interest paid Cholamandalam DBS Finance Ltd. 13,73,050/- 3,94,164/- HDB Finance Ltd. 51,30,989/- 2,25,131/- India Bulls Ltd. 77,72,456/- 9,02,249/- L&T Finance Ltd. 19,13,280/- 11,27,773/- Mahindra Finance Ltd. 72,68,060/- 6,50,533/- Reliance Capital 73,50,033/- 8,56,347/- Sundaram Finance Ltd. 65,41,526/- 5,00,372/- Tata Finance Ltd. 64,23,139/- 6,62,037/- Total 4,37,72 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO stood confirmed by learned CIT(A) vide common appellate order dated 15.03.2018 passed by learned CIT(A). 5. Aggrieved by common appellate order dated 15.03.2018 passed by learned CIT(A), the assessee has filed these two appeals for ay(s): 2013- 14 and 2014-15 respectively before the tribunal. At the outset, the Ld.Counsel for the assessee prayed that one more opportunity be granted to the assessee and the assessee will produce all relevant evidences/prescribed certificates from the auditors of the payees to prove that all these payees to whom payments under various heads were made by the assessee had included aforesaid income in their return of income filed with Revenue and paid due income-tax to the Department. The learned counsel for the assessee stated that no disallowance u/s 40(a)(ia) of the 1961 Act is warranted keeping in view ratio of decision of Hon'ble Delhi High Court in the case of CIT v. Ansal Land Mark Township Private Limited reported in (2015) 377 ITR 635(Delhi). It was submitted that second proviso to Section 40(a)(ia) of the 1961 Act which was inserted by Finance Act, 2012 w.e.f. 01.04.2013 shall come into play for rescue of the assessee, which was held to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The provisions of Section 40(a)(ia) of the 1961 Act were clearly hit on aforesaid payments made for ay: 2013-14 and the AO has rightly invoked provisions of Section 40(a)(ia) for making disallowance of expenses to the tune of ₹ 2,19,24,980/- , which stood later confirmed by learned CIT(A). So far as ay: 2014-15 is concerned, the learned CIT(A) has rightly excluded interest payments made by assessee to banks keeping in view exemption provided u/s 194A(3)(iii)(a) read with section 40(a)(ia) of the 1961 Act. The contention of the assessee that payments made for vehicle maintenance are not hit by Section 194C of the 1961 as the payments are made under oral contact cannot be accepted as provisions of Section 194C of the 1961 Act stipulates that payments to contractors/sub-contractors are covered by Section 194C of the 1961 Act . It did not distinguish between oral and written contracts. The Indian Contract Act, 1872 also recognized oral as well written contract as an agreements which are enforceable at law. There is no distinction made by Indian Contract Act, 1872 between oral and written contract so far as enforceability of these contracts at law is concerned. Thus, we donot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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