9911796707
TMI Blog2024 (11) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Ansal Land Mark Township (P.) Ltd.[ 2015 (9) TMI 79 - DELHI HIGH COURT] wherein held what is common to both the provisos to Section 40(a)(ia) and Section 201(1) of the Act is that as long as the payee/resident has filed its return of income disclosing the payment received by and in which the income earned by it is embedded and has also paid tax on such income, the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is a limited company deriving its income from business of wholesale and retail trading of electronic parts and equipment of other products and also derives income from other sources. 3.1. The assessee borrowed loans from Frost Infrastructure and Energy Limited and on such loan, the assessee paid interest of Rs. 1,99,65,854/-. Admittedly, no tax was deducted at source. As per the provisions of Section 40(a)(ia) of the Act, the assessee suo moto disallowed 30% of the interest expenditure. 3.1.1 The AO issued notice to the assessee initiating proceedings u/s 201 of the Act. The assessee submitted all details and information required during the proceedings u/s 201 of the Act and also pointed out that it has disallowed 30% of the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to TDS provisions again so as to make an assessee liable to interest u/s 201(1A) of the Act. 6.1. We draw support from the decision of the Co-ordinate Bench in the case of Robert Bosch Engineering and Business Solutions (P.) Ltd. reported in [2022] 137 taxmann.com 150 (Bangalore- Trib.). The relevant findings of the Co-ordinate Bench read as under:- 14. Now the issue that needs to be considered is in a situation where the assessee has not been treated to be an assessee in default, interest under section 201(1A) deserves be levied. In our humble opinion, the provision of TDS provisions cannot applicable where there is no claim of expenditure made by the assessee. In the present facts assessee made suo motu disallowance of the entire provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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