9911796707
TMI Blog2020 (9) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... dated under Rule 31ACB of the I.T.Rules. No hesitation to uphold the order of the PCIT, holding the assessment order is erroneous and prejudicial to the interest of the revenue and directing the AO to modify the assessment order by disallowing a sum u/s.40(a)(ia) of the Act and adding the same to the total income of the assessee. Hence, we confirm the order of the ld PCIT. - Decided against assessee. - ITA No. 107/CTK/2019 - - - Dated:- 14-8-2020 - SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER And LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessee by : Shri Mohit Sheth, AR Revenue by : Shri M.K.Gautam, CIT DR ORDER Per C. M. Garg, JM This is an appeal filed by the assessee against the order of the Pr. CIT, Cuttack dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irected the AO to modify the assessment order by disallowing a sum of ₹ 76,722/- u/s.40(a)(ia) of the Act. Hence, the assessee is in appeal before the Tribunal. 4. Ld counsel for the assessee submitted that during scrutiny assessment proceedings u/s.143(3) of the Act, the Assessing Officer made enquiries regarding interest paid by the assessee to M/s. Magma Financial Corporation, a Non-banking financial company with reference to the audited accounts of the assessee. Ld counsel further submitted that payment of interest of ₹ 76,772/- has been made to M/s. Magma Financial Corporation, which is a financial corporation established by or under a Central, State or Provincial Act, then the provisions of section 194A(1) of the Act sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reful consideration of the rival submissions, we are of the considered view that from the assessment order, it is vivid clear that AO has not made any enquiry on the issue of payment of interest to M/s. Magma Financial Corporation by the assessee during the relevant financial period. Ld counsel could not controvert the fact that recipient of impugned interest i.e. M/s. Magma Financial Corporation is a company incorporated under the Companies Act, 1956 and thus, the provisions of section 194A(3)(iii)(b) of the Act is not applicable to the facts and circumstances of the case. It is also not in dispute that the assessee has not complied with the provisions of Rule 31CAB read with first proviso to section 201(1) of the Act and has not submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
