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TMI Blog2024 (12) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of interest on loans to 30% of interest. - Shri Challa Nagendra Prasad, Judicial Member For the Assessee : Shri Sahil Sharma, Adv. And Shri Sanjay Parashar, Adv. For the Revenue : Shri Sanjay Sharma, Sr. DR ORDER This appeal is filed by the assessee against the order of the Ld. Addl./JCIT(Appeals)-9, Mumbai for the AY 2012-13 in sustaining the disallowance made by the Assessing Officer u/s 40(a)(ia) of the Act in respect of interest paid on loans. The assessee has raised the following grounds in his appeal: - 1. That on the facts and circumstances of the case and in law, the impugned order passed by the Ld. Assessing Officer ( AO ) u/s 143(3) r.w.s 254 of the Income Tax Act, 1961 ( the Act ) is arbitrary, bad in law and liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this judgment the Ld. Counsel submits that the coordinate bench after considering the provisions of section 40(a)(ia) of the Act and the amendment brought in by the Finance Act, 2014 restricted the disallowance u/s 40(a)(ia) to 30% instead of 100% by following the decision of the Jaipur bench in the case of Shri Rajendra Yadav Vs. ITO in ITA No.895/Jp/2012 dated 20.09.2016, wherein it was held that the disallowance u/s 40(a)(ia) is to be restricted to 30% of the disallowance. The Ld. Counsel further submits that following this judgment subsequently the coordinate bench of Delhi Tribunal in the case of Priyamda Media Infotainment Private Limited Vs. DCIT in ITA Nos. 7489/Del/2017 1598/Del/2020 dated 18.12.2023 also held that the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue. The same paras are reproduced as under: 6.1 Recently in the matter of P.M.S. Diesels 2015 59 taxmann.com 100 (Punjab Haryana), Hon'ble Punjab Haryana High Court had elaborately discussed the judgment passed by the Hon'ble Calcutta High Court and Hon'ble Gujarat High Court, Hon'ble Allahabad High Court and other judgments as available and thereafter has come to the conclusion that the provisions of section 40(a)(ia) are mandatory in nature and non compliance/non deduction of tax attracts disallowance of the entire amount. Having said so, we will be failing in our duty if we do not discuss the amendment brought in by the Finance (No.2) Act 2014 with effect from 1.4.2015 by virtue of which proviso to section 40(a)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s therefore submitted that disallowance may be restricted to 30% of the total disallowance. On the other hand Ld. DR relied upon orders of the authorities below. 6. We have considered rival submissions and find that issue is covered in favour of the assessee by order of ITAT Jaipur Bench in the case of Shri Rajendra Yadav vs. ITO and Smt. Sonu Khandelwal vs. ITO. In these orders it was held that the disallowance u/s 40(a)(ia) to be restricted to 30% of the addition. In these orders the Tribunal has considered the amended provisions of section 40(a)(ia) of I.T. Act. In these orders the assessment year's involve was 2007-08 and 2008-09. In the present appeal the assessment year is 2012-13. Therefore facts are identical. In this view of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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