9911796707
TMI Blog2020 (12) TMI 1279X X X X Extracts X X X X X X X X Extracts X X X X ..... of Tribunal has taken a view that the second proviso is curative and declaratory in nature. The ld. AR of the assessee has also placed on record the certificate of Chartered Accountant under section 201(1) of the Act, certifying the facts that India Bulls (one of the recipients) has included the said interest income in their income and has paid tax thereon. We are in the agreement, the submission of assessee that in case the recipient (India Bulls) has included the interest paid by assessee, in their income and have paid tax therein, no disallowances can be made in the hand of assessee. Therefore, we direct the Assessing Officer to verify the fact and allow appropriate relief to the assessee in accordance with law. The assessee also dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 40(a)(ia) of the Act introduced by Finance Act, 2012 is applicable from 01-04- 2013. Keeping in view these facts as well as the provision of law, no interference is called for in disallowance of ₹ 34,49,439/- made by the Assessing Officer u/s. 40(a)(ia) of the Act. Thus, Ground of Appeal of the appellant is dismissed. Thus, the Hon'ble CIT(A) has erred in law and on facts in confirming the disallowance of ₹ 33,04,381/- (₹ 33,40,381/- wrong) + ₹ 1,38,669/- + ₹ 6,389/- in aggregate of ₹ 34,49,439/- (The appellant has completed the procedure for an amount of ₹ 33,04,381/-) as per second proviso to Sec. 40(a)(ia) of the Act. 3. The Hon'ble CIT(A) has also erred in law and on facts consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 India Bulls 33,04,381/- TOTAL 34,49,439/- 3. The Assessing Officer issued show cause notice as to why the interest payment should be disallowed under section 40(a)(ia). The assessee filed its reply as recorded by the Assessing Officer in paragraph no.5.1 of the assessment order, the reply of assessee was not accepted by treating is as general and the Assessing Officer disallowed the entire interest expenses under section 40(a)(ia) of ₹ 34,49,439/-. On appeal before the ld. CIT(A), the action of the Assessing Officer was confirmed. Further, aggrieved the assessee has filed present appeal before this Tribunal. 4. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee has contravened the provision of section 194A of the Income Tax Act and thus, the assessing officer was right and justified in making disallowances under section 40(a)(ia). The Ld. DR prayed for sustain the order of assessing officer/Ld. CIT(A). In alternative submission, the ld. DR submits that in case the submission of the ld. AR of the assessee that recipient of the interest has paid tax, then issue may be restore to the file of the Assessing Officer for verification of facts and to pass the order afresh. 6. We have considered the rival submissions of both the parties and gone through the order of the authorities below. The Assessing Officer while passing the assessment order made addition under section 40 (a)(ia) for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
