9911796707
TMI Blog2024 (11) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... ) erred in passing the appellate order dated 25.06.2024 against the Assessee, without appreciating that the Assessee had suo motu made a disallowance of 30% of the expenditure, in respect of which tax was not deducted at source, while filing the income tax return, thus complying with the provisions of Section 40(a)(0) of the Act. 2. That, on the facts and circumstances of the case and in law, the Ld CIT(A) erred in not appreciating that the interest under the first proviso to s. 201(JA) of the Act is not leviable in a case where a voluntary disallowance under s. 40(a)(ia) of the Act is made by the Assessee at the time of filing of return. 3. That, on the facts and circumstances of the case and in law, the Ld CIT(A) erred in considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he say of the ld. Counsel of the assessee that since the assessee has voluntarily disallowed 30% of the expenditure, impliedly it has complied with the provisions of Section 40(a)(ia) of the Act. Therefore, any further addition is unwarranted. The ld. Counsel for the assessee further stated that interest under 1st proviso to Section 201(1A) of the Act is not leviable in a case where voluntary disallowance u/s 40(a)(ia) of the Act is made by the assessee at the time of filing of the return. Per contra, the ld. D/R strongly supported the findings of the ld. AO. 6. We have given a thoughtful consideration to the orders of the authorities below. The undisputed fact is that the assessee has suo moto disallowed the interest expenditure on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee(deductor) in a situation in which income embedded in such expenditure remained untaxed due to tax withholding lapses by such assessee (deductor)." 7. Moreover, the recipients of the interest have already included the said amounts in their returns of income and paid taxes thereon and the assessee has furnished evidence for the same including an Accountant Certificate as directed in the relevant provisions of the Act and since the tax has already been paid by the recipients, no further tax recovery is necessary. For this proposition, we draw support from the decision of the Hon'ble Delhi High Court in the case of CIT vs. Ansal Land Mark Township (P.) Ltd. [2015] 61 taxmann.com 45 (Del.) wherein, the Hon'ble High Court has held as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
