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TMI Blog2019 (11) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... of taxation. Thus, while the assessee may not be permitted to defer the tax liability of income of the present year to the next year, the Revenue at the same time cannot sit over the taxes wrongly paid for the income already assessed in the preceding assessment year AY 2011-12 and refusing to refund the same in AY 2012-13. The action of the CIT(A) is accordingly set aside on this score and the AO is directed to refund the taxes collected in AY 2012-13 in accordance with law after ascertaining the fact of the taxes recovered on the same income in AY 2011-12. Mis-match in the rent income offered as per return of income vis- -vis income accrued reported by the payer as reflected in annual statement Form No.26AS of the assessee - HELD THA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se additional ground without good reason at a belated stage without showing its bonafides. The additional ground raised is thus dismissed. - I.T.A. No. 880/Ahd/2016 - - - Dated:- 23-10-2019 - SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER For The Appellant : Smt. Urvashi Shodhan, A. R. For The Respondent : Shri Lalit P. Jain, Sr. D.R. ORDER PER PRADIP KUMAR KEDIA - AM: The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-5, Ahmedabad (CIT(A) in short), dated 06.01.2016 arising in the assessment order dated 04.02.2014 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was submitted that identical issue came up in the case of ITO vs. Arvind Lifestyle Brands Ltd. in ITA No.3461/Ahd/2015 order dated 27.08.2018. The relevant para concerning the issue is reproduced hereunder for easy reference: 9. Ground No.2 concerns disallowance of ₹ 4,24,692/- in respect of interest paid to NBFC without deduction to tax. 10. During the course of the assessment proceedings, it was noticed by the AO that the assessee had paid interest of ₹ 4,24,692/- on vehicle loans to Kotak Mahindra Prime Ltd. (A NBFC and subsidiary of Kotak Mahindra Bank Ltd.). It was observed by the AO that assessee has failed to deduct tax at source as per provisions of Section 194A on such interest expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The A.O further noticed that the assessee has made interest payment to these parties without making any deduction of tax at source. Assessee was asked to explain on the disallowance of interest expenditure should not be made u/s. 40(a)(ia) of the Act. 5. Assessee filed a detailed reply claiming that if the payees have offered the income for tax and has paid taxes thereon provisions of Section 40(a)(ia) are not applicable because of the amendment brought in the explanation. However, this claim of the assessee did not find favour with the A.O, who was of the firm belief that the amendment is applicable from A.Y. 2013-14 onwards and accordingly made the disallowance of interest. 6. Assessee carried the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o furnish necessary evidences to show that the payee has filed returns and offered the sum received to tax. The A.O is directed to verify the same and decide the issue in the light of the ratio laid down by the Hon'ble High Court of Delhi (supra). 9. In the result, both these appeals by the assessee are treated as allowed for statistical purpose. 13. A perusal of the order of the CIT(A) shows that its action is squarely in tandem with the observations made by the co-ordinate bench. The CIT(A) has rightly applied the ratio laid down by the Hon ble Delhi High Court in the facts of the case. Thus, there is no warrant to interfere with the same. 14. In the result, Ground No.2 of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the present year to the next year, the Revenue at the same time cannot sit over the taxes wrongly paid for the income already assessed in the preceding assessment year AY 2011-12 and refusing to refund the same in AY 2012-13. The action of the CIT(A) is accordingly set aside on this score and the AO is directed to refund the taxes collected in AY 2012-13 in accordance with law after ascertaining the fact of the taxes recovered on the same income in AY 2011-12. 8. In the result, Ground No.2 3 of the assessee s appeal are allowed for statistical purposes. 9. Ground No.4 concerns redressal of dispute on account of mis-match in the rent income offered as per return of income vis- -vis income accrued repor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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