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2016 (9) TMI 1286 - AT - Income TaxNon-deduction of tax at source on interest paid to NBFCs - amount already paid during the year or amount shown as payable as on 31st March of every year - Held that:- In the case of Girdhari Lal Bargoti (2015 (11) TMI 746 - ITAT JAIPUR), it has been held that considering the issue of amount already paid during the year or amount shown as payable as on 31st March of every year, dealing with the provisions of Section 40(a)(ia) of the Act, different courts have taken mutually divergent views and as such, there is a diversion of legal opinion, which is both in favour of the assessee and in favour of the department. In such a situation, the Jaipur Tribunal has followed the Hon'ble Supreme Court decision in the case of Vegetable Products Limited (1973 (1) TMI 1 - SUPREME Court) to decide the matter in favour of the assessee. Here, it is seen that clearly, the decision in the case of Vector Shipping (2013 (7) TMI 622 - ALLAHABAD HIGH COURT) is in favour of the assessee, whereas the decisions the case of CIT Vs. Crescent Export Syndicate [2013 (5) TMI 510 - CALCUTTA HIGH COURT], CIT Vs. Sikandar Khan N. Tunvar [2013 (5) TMI 457 - GUJARAT HIGH COURT] and PMS Diesels Vs CIT (2015 (5) TMI 617 - PUNJAB & HARYANA HIGH COURT) are in favour of the department. Therefore, evidently, there is a cleavage of judicial opinion on the issue. In such a situation, the mandate of the law, as per decision of the Hon'ble Supreme Court in the case of Vegetable Products Ltd. (supra) is to follow the view in favour of the assessee. That being so, by respectfully following the decision of the Coordinate Bench of Jaipur ITAT in the case of Girdhari Lal Bargoti (supra), the issue is decided in favour of the assessee.
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