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TMI Blog2018 (7) TMI 2115X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. We remand the matter back to the file of the AO with a direction to verify whether the assessee had made the contribution to CBF in pursuance to the notification dt.18.1.2007 or the corrigendum issued. If the payment of CBF is made in accordance with the said notification then the same shall be allowed after verification. Disallowance of the interest paid to NBFC u/s.40(a)(ia) - HELD THAT:- Since the assessee has filed the confirmation letter in proof of paying the interest against loans given by NBFC and therefore in the fitness of things, it is required that the facts are required to be verified by the AO after affording opportunity of being heard to the assessee. In the light of the above, we remand this issue also to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the NBFC has offered the interest paid by the appellant as its income, therefore the disallowance of interest is not in accordance with the provisions of the Act. 2. With respect to grounds 2 and 3, it was the contention of the assessee that the AO had disallowed the expenditure under the heading Contractors Benevolent Fund (CBF) for an amount of ₹ 1,28,300/- stating that the expenditure is not allowable u/s.37 of the Act. 3. Before us the Ld. AR has submitted that the assessee is a first class civil contractor doing civil work for government undertakings, as per the notification issued by the Government of Karnataka. The assessee is deducting the NBFC in the running bills. For that purposes, our attention was drawn to the no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to the disallowance made by the AO of the interest paid to NBFC of an amount of ₹ 8,04,193/- u/s.40(a)(ia) of the Act. In this regard, it was submitted by the assesseee before us that the assesseee had paid the interest on loans and the assessee had received the confirmation letter from the said NBFC to prove the payment of interest on the loan amount. However copies of the said confirmation was submitted to the CIT (A). The CIT (A) has not verified the statement so submitted before him and has confirmed the order passed by the AO. 6. The Ld. AR has submitted that the assessee had merely made the payment of interest to NBFC and it had offered the interest payment as income in the respective return of income for which confir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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