9911796707
TMI Blog2019 (12) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... n the instant case, the assessee has made the payment without deduction of tax at source and the recipient has filed the return of income on 28.11.2013 relevant to the F.Y. 2013-14 which is relevant to the A.Y. 2014-15. As per second proviso to sub section 40(a)(ia) of the Act, if the assessee is not deemed to be assessee in default in accordance with the provisions of Chapter XVII-B of the Act, on the said sum it shall be deemed that the assessee has deducted the TDS and paid the tax on such sum on the date of furnishing the return of income by the recipient referred to in said proviso, if the recipient has admitted the income and paid the tax thereon. In the instant case, the payee has filed the return of income on 28.11.2013 which is rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a)(ia) of the Act and the assessee submitted before the AO that though the TDS was not made, the recipient had admitted the income and filed the return of income, hence requested not to disallow the said sum of ₹ 5,77,426/- u/s 40(a)(ia) of the Act. The AO called for the certificate from C.A. as required under the Act and the assessee failed to furnish the same to the AO. Therefore, the AO made the addition u/s 40(a)(ia) of the Act. 3. Aggrieved by the order of the AO, the assessee went on appeal before the CIT(A) and submitted the copy of Form 26A along with the certificate from the C.A., certifying that the recipient had admitted the income. The Ld.CIT(A) found from the certificate of the C.A. that the recipient Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be allowed in the impugned assessment year to the assessee and it should not be postponed to the subsequent year. Accordingly, requested to delete the addition made by the AO and set aside the order of the Ld.CIT(A). 5. On the other hand, the Ld.DR submitted that in the instant case, the assessee has not deducted the TDS as required u/s 194A of the Act and the recipient did not file the return of income before the due date for filing the return of income. Therefore, the Ld.DR argued that, since, the assessee has failed to deduct the TDS and remit to Government account and the return of income was filed during the F.Y.2013-14 which is relevant to the A.Y. 2014-15, the Ld.CIT(A) has rightly allowed the deductions in the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Form 26A issued by M/s Shriram Transport Finance. As such, the assessee has invoked the second proviso to Sec. 40(a)(ia) of the Act in order to claim relief from the rigours of Sec. 40(a)(ia) of the Act. 8.2.4. At this juncture, it is important to note that as per the second proviso to section 40(a) (ia) of the Act, it is categorically stated that the assessee would be treated as an assessee not in default from the date of filing the return of income by the, recipient/resident payee. In this regard, the relevant portion of the statute is reproduced below for ready reference and better understanding of the statutory position. Section 40. Amounts not deductable : Section 40( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s Shriram Transport Finance was filed in the FY 2013-14 relevant to the AY 2014-15. The details of the same are given below : S.No. Name of the recipient of interest / deductee Date of filing the return of income 1. M/s Shriram Transport Finance 28.11.2013 As seen from the above, the recipient of finance charges has filed its return of income on28 11 2013 relevant to FY 2013-14 which corresponds to the AY 2014-15 8.2.6. In view of the aforementioned factual matrix and statutory position, I am of the considere ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
