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TMI Blog2022 (1) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... Treatment of interest expense as revenue expenditure - CIT(A) confirmed the disallowance, observing that even during the appellate proceedings before her, no details regarding Capital Work In Progress and interest paid on account of cash credit/buyer credit had been filed by the assessee - HELD THAT:- Assessee has stated that details regarding the Capital Work In Progress were filed before the Ld. CIT(A). Our attention has been drawn to APB 6, i.e. the details of Capital Work In Progress. Here also, the details of Capital Work In Progress required verification at the hands of the AO. For this purpose, this issue is also remitted to the AO. If the details are found to be in order, the AO shall delete the disallowance accordingly. - ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as an admitted fact that interest of ₹ 59,949/- stood paid without deduction of tax at source ; that the second proviso of section 40(a)(ia) as above of the Act provides that where the assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B of the Act on any such sum, but is not deemed to be an assessee in default under the first proviso to section 201(1), then, it shall be deemed that the assessee had deducted and paid the tax on such sum on the date of furnishing of the return of income by the resident to be payee referred to in the said proviso ; that, further, for the purpose of the proviso to section 201(1), the certificate which is required, is to be furnished in Form No. 26A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealing with the consequences of failure to deduct or pay tax at source, provides that where any person, as provided therein, does not deduct the whole or any part of the tax, as required by or under the I.T. Act, then, such person shall be deemed to be an assessee in default in respect of such tax. 7.1 The first proviso to section 201(1) states that any person, who fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII of the Act on the sum paid to payee or on the sum credited to the amount of the payee, is not to be deemed to be an assessee in default in respect of such tax if such payee has furnished his return of income u/ s 139, has taken into account such sum for computing income in such r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ork In Progress . The assesee, as per the AO, was required to capitalise the interest cost used for the purpose of capital work in progress. The AO observed that no detail of the interest expense had been given by the assessee. Accordingly, the AO treated the entire interest expense as revenue expenditure and disallowed 12% of the amount of ₹ 94,90,045/-, amounting to ₹ 11,38,805/-. 11. The ld. DR, on the other hand, has placed strong reliance on the impugned order. 12. The ld. CIT(A) confirmed the disallowance, observing that even during the appellate proceedings before her, no details regarding Capital Work In Progress and interest paid on account of cash credit/buyer credit had been filed by the assesee, and that in suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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